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National Lottery etc. Act 1993 (c. 39)

(The document as of February, 2008. Arhiv.Online Library)

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National Lottery etc. Act 1993 (c. 39)

1993 CHAPTER 39

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    Authorisation and Regulation of the National Lottery

    1. Preliminary

      1. 1. The National Lottery.

      2. 2. Legality of lotteries forming part of the National Lottery.

      3. 3. The Director General of the National Lottery.

      4. 4. Overriding duties of the Secretary of State and Director General.

    2. The licensing system

      1. 5. Licensing of a body to run the National Lottery.

      2. 6. Licensing of bodies to promote lotteries.

      3. 7. Licences under sections 5 and 6: further provisions.

      4. 8. Variation of conditions in licences.

      5. 9. Enforcement of conditions in licences.

      6. 10. Revocation of licences.

    3. Control by the Secretary of State

      1. 11. Directions to the Director General.

      2. 12. Regulations as to the promotion of lotteries.

      3. 13. Contravention of regulations an offence.

    4. Provision of information by the Director General

      1. 14. Annual report.

      2. 15. Power of the Secretary of State to require information.

    5. Miscellaneous and supplementary

      1. 16. False representations as to the National Lottery.

      2. 17. Extension of powers of Horserace Totalisator Board.

      3. 18. Control of betting on the National Lottery.

      4. 19. Restriction of enactments relating to the rehabilitation of offenders.

      5. 20. Interpretation of Part I.

  2. Part II

    Distribution of the Net Proceeds of the National Lottery

    1. The distribution system

      1. 21. The National Lottery Distribution Fund.

      2. 22. Apportionment of money in Distribution Fund.

      3. 23. The distributing bodies.

      4. 24. Payments from Distribution Fund to distributing bodies.

      5. 25. Application of money by distributing bodies.

    2. Control by the Secretary of State

      1. 26. Directions to distributing bodies.

      2. 27. Power to prohibit distribution in certain cases.

      3. 28. Power to amend section 22.

      4. 29. Power to amend section 23.

    3. Winding up of fund allocated under section 22(3)(e)

      1. 30. Winding up of fund allocated under section 22(3)(e).

    4. Distribution Fund: further provisions

      1. 31. Payments from Distribution Fund in respect of expenses.

      2. 32. Investment of Distribution Fund.

      3. 33. Accounts of the Secretary of State and National Debt Commissioners.

    5. Reports and accounts of distributing bodies

      1. 34. Annual reports by distributing bodies other than Millennium Commission.

      2. 35. Accounts of distributing bodies other than Charities Board and Millennium Commission.

    6. The Trustees of the National Heritage Memorial Fund

      1. 36. Amendment of the National Heritage Act 1980.

    7. The National Lottery Charities Board

      1. 37. The National Lottery Charities Board.

      2. 38. Grants to charities etc.

      3. 39. Accounts.

    8. The Millennium Commission

      1. 40. The Millennium Commission.

      2. 41. Grants in respect of projects.

      3. 42. Annual report.

      4. 43. Accounts.

    9. Supplementary

      1. 44. Interpretation of Part II.

  3. Part III

    Miscellaneous Amendments Relating to Lotteries

    1. Preliminary

      1. 45. Interpretation of Part III.

    2. Importation and exportation restrictions

      1. 46. Importation and exportation restrictions.

    3. Private lotteries

      1. 47. Private lotteries.

    4. Societies' lotteries and local lotteries

      1. 48. Registration of societies.

      2. 49. Registration of lottery schemes.

      3. 50. Lottery managers.

      4. 51. Frequency of lotteries.

      5. 52. Rules for lotteries.

      6. 53. Offences.

      7. 54. Powers of the Secretary of State to vary monetary limits and to prescribe or vary fees.

      8. 55. Interpretation of the 1976 Act.

  4. Part IV

    Pool Betting

    1. 56. Removal of prohibition on the use of premises for the delivery of football pools coupons and stakes.

    2. 57. Reduction of age limit in relation to football pool betting.

    3. 58. Roll-over of prize money.

    4. 59. Pool promoters' dividends.

  5. Part V

    Supplementary

    1. 60. Orders and regulations.

    2. 61. Directions.

    3. 62. Expenses.

    4. 63. Northern Ireland.

    5. 64. Repeals.

    6. 65. Commencement.

    7. 66. Short title.

    1. Schedule 1

      Legality etc. of lotteries forming part of the National Lottery.

    2. Schedule 2

      The Director General of the National Lottery.

    3. Schedule 3

      Revocation of licences.

      1. Part I

        Discretionary grounds for revocation.

      2. Part II

        Procedure and appeals.

    4. Schedule 4

      Amendment of the National Heritage Act 1980.

    5. Schedule 5

      The National Lottery Charities Board.

    6. Schedule 6

      The Millennium Commission.

    7. Schedule 7

      Registration of societies.

      1. Part I

        Amendment of Schedule 1 to the 1976 Act.

      2. Part II

        Schedule to be inserted in the 1976 Act after Schedule 1.

    8. Schedule 8

      Registration of schemes: amendment of Schedule 2 to the 1976 Act.

    9. Schedule 9

      Schedule to be inserted in the 1976 Act after Schedule 2.

    10. Schedule 10

      Repeals.

An Act to authorise lotteries to be promoted as part of a National Lottery; to make provision with respect to the running and regulation of that National Lottery and with respect to the distribution of its net proceeds; to increase the membership and extend the powers of the Trustees of the National Heritage Memorial Fund; to amend section 1 of the Revenue Act 1898 and the Lotteries and Amusements Act 1976; to amend the law relating to pool betting; and for connected purposes.

[21st October 1993]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I Authorisation and Regulation of the National Lottery

Preliminary

1 The National Lottery

(1) In this Act "the National Lottery" means all the lotteries that form part of the National Lottery, taken as a whole.

(2) A lottery forms part of the National Lottery if the following conditions are satisfied.

(3) The lottery must be promoted or proposed to be promoted--

(a) by the body licensed to run the National Lottery under section 5, or

(b) in pursuance of an agreement that has been made between that body and the lottery's promoter or proposed promoter.

(4) The promotion of the lottery must be authorised by a licence that has been granted to its promoter or proposed promoter under section 6.

2 Legality of lotteries forming part of the National Lottery

(1) A lottery that forms part of the National Lottery shall not be unlawful.

(2) Schedule 1 contains amendments consequential on subsection (1).

3 The Director General of the National Lottery

(1) There shall be an office the holder of which shall be appointed by the Secretary of State and known as the Director General of the National Lottery.

(2) Schedule 2 makes provision in relation to the Director General.

4 Overriding duties of the Secretary of State and Director General

(1) The Secretary of State and (subject to any directions he may be given by the Secretary of State under section 11) the Director General shall each exercise his functions under this Part in the manner he considers the most likely to secure--

(a) that the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety, and

(b) that the interests of every participant in a lottery that forms part of the National Lottery are protected.

(2) Subject to subsection (1), the Secretary of State and the Director General shall each in exercising those functions do his best to secure that the net proceeds of the National Lottery are as great as possible.

(3) In subsection (2) "the net proceeds of the National Lottery" means the sums that are paid to the Secretary of State by virtue of section 5(6).



The licensing system

5 Licensing of a body to run the National Lottery

(1) The Director General may by licence authorise a body corporate to run the National Lottery.

(2) Only one body may be licensed under this section at any one time.

(3) The Director General shall not grant a licence under this section unless an application in writing, containing such information as he has specified as necessary for enabling him to determine whether to grant it, has been made to him by such date as he has specified.

(4) The Director General shall not grant such a licence unless he is satisfied that the applicant is a fit and proper body to run the National Lottery.

(5) In determining whether to grant such a licence, the Director General may consider--

(a) whether any person who appears to him to be likely to manage the business or any part of the business of running the National Lottery under the licence is a fit and proper person to do so, and

(b) whether any person who appears to him to be likely to be a person for whose benefit that business would be carried on is a fit and proper person to benefit from it.

(6) A licence under this section shall include a condition requiring the licensee to pay to the Secretary of State at such times as may be determined by or under the licence such sums out of the proceeds of lotteries forming part of the National Lottery as may be so determined.

(7) A licence under this section may include a condition requiring the licensee to make such arrangements as may be determined by or under the licence for securing that, in circumstances specified in the licence, such sums as may be so determined are paid to the Director General for distribution to participants in lotteries forming part of the National Lottery.

6 Licensing of bodies to promote lotteries

(1) The Director General may by licence authorise a body corporate to promote lotteries as part of the National Lottery.

(2) A licence under this section shall specify the lotteries, or descriptions of lottery, the promotion of which it authorises.

(3) The Director General shall not grant such a licence unless an application in writing, containing such information as he has specified as necessary for enabling him to determine whether to grant it, has been made to him.

(4) The Director General shall not grant such a licence unless he is satisfied that the applicant is a fit and proper body to promote lotteries under the licence.

(5) In determining whether to grant such a licence, the Director General may consider--

(a) whether any person who appears to him to be likely to manage the business or any part of the business of promoting lotteries under the licence is a fit and proper person to do so, and

(b) whether any person who appears to him to be likely to be a person for whose benefit that business would be carried on is a fit and proper person to benefit from it.

(6) A licence under this section may include a condition requiring the licensee to obtain the Director General's approval of the rules of any lottery before the lottery is promoted under the licence.

7 Licences under sections 5 and 6: further provisions

(1) A licence granted under section 5 or 6 shall be in writing and shall specify the period for which (subject to being revoked or suspended) it is to have effect.

(2) Such a licence may include such conditions (in addition to those required or authorised by section 5 or 6) as the Director General considers appropriate and in particular may include conditions requiring the licensee--

(a) to obtain the consent of the Director General before doing anything specified, or of a description specified, in the licence;

(b) to refer matters to the Director General for approval;

(c) to ensure that such requirements as the Director General may from time to time determine or approve are complied with;

(d) to provide the Director General at times specified by him with such information as he may require (including, if the information is of a description specified in the licence, information for publication by him);

(e) to allow the Director General to inspect and take copies of any documents of the licensee, including any information kept by the licensee otherwise than in writing, relating to the National Lottery or a lottery forming part of it;

(f) where such information is kept by means of a computer, to give the Director General such assistance as he may require to enable him to inspect and take copies of the information in a visible and legible form or to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information;

(g) to do such things (and, in particular, to effect such transfers of property or rights) as the Director General may require in connection with the licence ceasing to have effect and the grant of a licence to another body.

(3) In subsection (2)(e) and (f) "the Director General" includes any representative of the Director General, as well as any member of his staff, who has been authorised by him (whether generally or specially) to make such an inspection.

(4) Conditions in a licence granted under section 5 or 6 may impose requirements to be complied with by the licensee after the licence has ceased to have effect.

(5) On the granting of a licence under section 5 or 6, the licensee shall pay to the Director General a fee of such amount as the Secretary of State may by order prescribe.

(6) All fees received by the Director General by virtue of subsection (5) shall be paid into the Consolidated Fund.

8 Variation of conditions in licences

(1) The Director General may vary any condition in a licence granted under section 5 or 6 if the licensee consents.

(2) Subject to subsection (3), the Director General may vary any condition in such a licence without the licensee's consent if the licensee has been given a reasonable opportunity of making representations to the Director General about the variation.

(3) Subsection (2) does not apply--

(a) where the variation would result in a condition requiring the licensee to transfer any property or rights, or

(b) in the case of a licence granted under section 5, in relation to a condition that the licence provides may only be varied with the consent of the licensee.

(4) Where the Director General varies a condition in a licence under subsection (2)--

(a) he shall serve a notice on the licensee informing the licensee of the variation, and

(b) the variation shall take effect at the end of such period as may be specified in the notice.

(5) The period specified in the notice shall be a period of at least twenty-one days beginning with the date of the notice.

(6) The Director General's power to vary a condition in a licence under subsection (1) or (2) includes power to add a condition to the licence or omit a condition from it (and references in this section to the variation of a condition are to be read accordingly).

9 Enforcement of conditions in licences

(1) If, on an application made by the Director General, the court is satisfied--

(a) that there is a reasonable likelihood that a person will contravene a condition in a licence granted under section 5 or 6,

(b) that a person has contravened such a condition and there is a reasonable likelihood that the contravention will continue or be repeated, or

(c) that a person has contravened such a condition and there are steps that could be taken for remedying the contravention,

the court may grant an injunction restraining the contravention or, in Scotland, an interdict prohibiting the contravention or (as the case may be) make an order requiring the licensee, and any other person who appears to the court to have been party to the contravention, to take such steps as the court may direct to remedy it.

(2) In subsection (1) "the court" means the High Court or, in Scotland, the Court of Session.

(3) Any sum payable to the Secretary of State in accordance with a condition included in a licence by virtue of section 5(6) shall be recoverable by him as a debt due to him from the licensee (and the licensee's liability to pay it shall not be affected by the licence ceasing for any reason to have effect).

10 Revocation of licences

(1) The Director General shall revoke a licence granted under section 5 if he is satisfied that the licensee no longer is, or never was, a fit and proper body to run the National Lottery.

(2) The Director General shall revoke a licence granted under section 6 if he is satisfied that the licensee no longer is, or never was, a fit and proper body to promote lotteries under the licence.

(3) The Director General may revoke a licence granted under section 5 or 6--

(a) if it appears to him that any of the grounds for revocation set out in Part I of Schedule 3 applies, or

(b) if the licensee consents.

(4) Part II of Schedule 3 shall have effect in relation to the revocation of a licence under this section, other than a revocation with the licensee's consent.



Control by the Secretary of State

11 Directions to the Director General

(1) The Director General shall in exercising his functions under sections 5 to 10 comply with any directions that he may be given by the Secretary of State.

(2) Such directions may deal in particular--

(a) with the matters that the Director General should take into account in deciding whether or not to grant licences;

(b) with the conditions that licences should contain.

12 Regulations as to the promotion of lotteries

(1) The Secretary of State may by regulations make such provision in relation to the promotion of lotteries that form part of the National Lottery as he considers necessary or expedient.

(2) Such regulations may in particular impose requirements or restrictions as to--

(a) the minimum age of persons to whom or by whom tickets or chances may be sold;

(b) the places, circumstances or manner in which tickets or chances may be sold or persons may be invited to buy them;

(c) the information that must appear in an advertisement for a lottery;

(d) the places, circumstances or manner in which signs relating to a lottery may be displayed.

(3) In subsection (2) "tickets" includes any document providing evidence of a person's claim to participate in the chances of a lottery.

(4) Regulations under this section may make different provision for different areas.

13 Contravention of regulations an offence

(1) If any requirement or restriction imposed by regulations made under section 12 is contravened in relation to the promotion of a lottery that forms part of the National Lottery--

(a) the promoter of the lottery shall be guilty of an offence, except if the contravention occurred without the consent or connivance of the promoter and the promoter exercised all due diligence to prevent such a contravention,

(b) any director, manager, secretary or other similar officer of the promoter, or any person purporting to act in such a capacity, shall be guilty of an offence if he consented to or connived at the contravention or if the contravention was attributable to any neglect on his part, and

(c) any other person who was party to the contravention shall be guilty of an offence.

(2) A person guilty of an offence under this section shall be liable--

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both.

(3) Summary proceedings in Scotland for an offence under this section may be commenced within a period of six months from the date on which evidence sufficient in the opinion of the procurator fiscal to warrant proceedings came to his knowledge; but no proceedings in Scotland shall be commenced by virtue of this section more than three years after the commission of the offence.

(4) For the purposes of this section, a certificate signed by or on behalf of the procurator fiscal and stating the date on which evidence sufficient in his opinion to warrant the proceedings came to his knowledge shall be conclusive evidence of that fact; and a certificate stating that matter and purporting to be so signed shall be taken to be so signed unless the contrary is proved.



Provision of information by the Director General

14 Annual report

(1) As soon as possible after the end of every financial year, the Director General shall make a report on the exercise of his functions during that year to the Secretary of State.

(2) In subsection (1) "financial year" means--

(a) the period beginning with the date on which the first holder of the office of Director General is appointed and ending with the next 31st March, and

(b) each successive period of twelve months ending with 31st March.

(3) The Secretary of State shall lay a copy of every report received by him under this section before Parliament.

15 Power of the Secretary of State to require information

The Director General shall provide the Secretary of State with such information relating to the National Lottery or a lottery forming part of it as the Secretary of State may direct.



Miscellaneous and supplementary

16 False representations as to the National Lottery

(1) If a person advertising, or offering the opportunity to participate in, a lottery, competition or game of another description gives, by whatever means, a false indication that it is a lottery forming part of, or is otherwise connected with, the National Lottery, he shall be guilty of an offence.

(2) A person guilty of an offence under this section shall be liable--

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both.

17 Extension of powers of Horserace Totalisator Board

(1) The Horserace Totalisator Board may hold a licence under section 5 or 6.

(2) The Horserace Totalisator Board may hold an interest in a body corporate the only or principal object of which is the holding of a licence under section 5 or 6.

(3) In subsection (2) the reference to holding an interest in a body corporate is to holding, or being beneficially entitled to, shares in that body or to possessing voting power in that body.

18 Control of betting on the National Lottery

(1) Schedule 1 to the [1963 c. 2.] Betting, Gaming and Lotteries Act 1963 (bookmaker's permits, betting agency permits and betting office licences) shall be amended in accordance with subsections (2) to (4).

(2) In paragraph 15(e) (application for grant or renewal of bookmaker's or betting agency permit must be refused if a similar application has been refused under paragraph 16(1)(a) or 17(b) within preceding twelve months) after "16(1)(a)" and after "17(b)" there shall be inserted "or 18A".

(3) After paragraph 18 there shall be inserted--

" 18A (1) In the case of an application for the renewal of a bookmaker's permit or a betting agency permit, the appropriate authority shall refuse the application if they are satisfied that the applicant or an employee of his has, since the permit was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993.

(2) For the purposes of sub-paragraph (1) above, the appropriate authority shall disregard any bet which ought properly to have been raised by way of objection on a previous occasion when the permit was renewed. "

(4) In paragraph 27(4) (grounds on which bookmaker's permit may be cancelled) after paragraph (b) there shall be inserted-- " ; or

(c) the authority are satisfied that the holder of the permit or an employee of his has, since the permit was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993. "

(5) The [S.I. 1985/1204 (N.I. 11).] Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 shall be amended in accordance with subsections (6) to (8).

(6) In Article 8(4) (grounds on which an application for a bookmaker's licence must be refused) in sub-paragraph (d) after "(e)" there shall be inserted "or in Article 17(2)(d)".

(7) In Article 17 (renewal of bookmaker's licence by a court)--

(a) after paragraph (2)(c) there shall be inserted-- " ; and

(d) that neither the applicant nor any employee of his has, since the licence was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993. " , and

(b) after paragraph (2) there shall be inserted--

" (2A) For the purposes of paragraph (2)(d), the court shall disregard any bet which ought properly to have been raised by way of objection on a previous occasion when the licence was renewed. "

(8) In Article 27(1) (grounds on which bookmaker's licence may be revoked) after paragraph (e) there shall be inserted-- " ; Fo

(f) that the licensed bookmaker or an employee of his has, since the licence was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993. "

19 Restriction of enactments relating to the rehabilitation of offenders

(1) Neither section 4(1) of the [1974 c. 53.] Rehabilitation of Offenders Act 1974 nor Article 5(1) of the [S.I. 1978/1908 (N.I. 27).] Rehabilitation of Offenders (Northern Ireland) Order 1978 (exclusion of evidence and questions relating to an individual's previous convictions) shall apply in relation to any proceedings--

(a) before the Director General in respect of the grant or revocation of a licence, or

(b) by way of appeal to the Secretary of State against the revocation of a licence by the Director General.

(2) A conviction shall not be regarded as spent for the purposes of section 4(2) of that Act or Article 5(2) of that Order (restrictions in respect of such questions put otherwise than in proceedings) if the question is put by the Director General and the following conditions are satisfied.

(3) The question must be put for the purpose of determining whether to grant or revoke a licence.

(4) The question must relate to an individual--

(a) who manages the business or any part of the business carried on under the licence (or who is likely to do so if the licence is granted), or

(b) for whose benefit that business is carried on (or is likely to be carried on if the licence is granted).

(5) When the question is asked, the person questioned must be informed that by virtue of this section all the individual's previous convictions are to be disclosed.

20 Interpretation of Part I

In this Part--

  • "contravention", in relation to a condition or requirement, includes a failure to comply with that condition or requirement (and "contravened" is to be read accordingly);

  • "the Director General" means the Director General of the National Lottery;

  • "participant", in relation to a lottery, means a person who has bought a ticket or chance in the lottery;

  • "promote" includes conduct (and "promotion" is to be read accordingly);

and any reference to a lottery forming part of the National Lottery is to be read in accordance with section 1.



Part II Distribution of the Net Proceeds of the National Lottery

The distribution system

21 The National Lottery Distribution Fund

(1) There shall be a fund maintained under the control and management of the Secretary of State and known as the National Lottery Distribution Fund.

(2) The Secretary of State shall pay into the Distribution Fund all the sums that are paid to him by virtue of section 5(6).

22 Apportionment of money in Distribution Fund

(1) Every sum that is paid into the Distribution Fund under section 21(2) shall be apportioned as follows.

(2) So much of the sum as the Secretary of State considers appropriate shall be allocated for making payments under section 31 and held in the Distribution Fund for that purpose.

(3) Of the balance--

(a) 20 per cent. shall be allocated for expenditure on or connected with the arts,

(b) 20 per cent. shall be allocated for expenditure on or connected with sport,

(c) 20 per cent. shall be allocated for expenditure on or connected with the national heritage,

(d) 20 per cent. shall be allocated for charitable expenditure, and

(e) 20 per cent. shall be allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium.

23 The distributing bodies

(1) So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the arts shall be held in the Distribution Fund--

(a) as to 97.2 per cent., for distribution by the Arts Council of Great Britain, and

(b) as to 2.8 per cent., for distribution by the Arts Council of Northern Ireland.

(2) So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with sport shall be held in the Distribution Fund--

(a) as to 83.3 per cent., for distribution by the Sports Council,

(b) as to 8.9 per cent., for distribution by the Scottish Sports Council,

(c) as to 5 per cent., for distribution by the Sports Council for Wales, and

(d) as to 2.8 per cent., for distribution by the Sports Council for Northern Ireland.

(3) So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the national heritage shall be held in the Distribution Fund for distribution by the Trustees of the National Heritage Memorial Fund.

(4) So much of any sum paid into the Distribution Fund as is allocated for charitable expenditure shall be held in the Distribution Fund for distribution by the National Lottery Charities Board (established under section 37).

(5) So much of any sum paid into the Distribution Fund as is allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium shall be held in the Distribution Fund for distribution by the Millennium Commission (established under section 40).

24 Payments from Distribution Fund to distributing bodies

At such times as the Secretary of State thinks appropriate, payments of such amounts as he thinks appropriate may be made to a body specified in section 23 out of so much of any money in the Distribution Fund as is held for distribution by that body.

25 Application of money by distributing bodies

(1) Subject to the provisions of this Part, a body shall distribute any money paid to it under section 24 for meeting expenditure of the relevant description mentioned in section 22(3).

(2) A body shall not under subsection (1) distribute money for any purpose or in any manner if it does not have power to distribute money for that purpose or in that manner apart from subsection (1).

(3) A body may defray out of any money paid to it under section 24 any expenses incurred by the body in consequence of this Act.

(4) The Trustees of the National Heritage Memorial Fund may apply any money paid to them under section 24 for any purpose for which they have power to apply money under section 4 of the [1980 c. 17.] National Heritage Act 1980 (acquisition, maintenance or preservation of property in respect of which they may make grants or loans under section 3(1) of that Act).



Control by the Secretary of State

26 Directions to distributing bodies

(1) A body shall comply with any directions given to it by the Secretary of State as to the matters to be taken into account in determining the persons to whom, the purposes for which and the conditions subject to which the body distributes any money under section 25(1).

(2) The Trustees of the National Heritage Memorial Fund shall comply with any directions given to them by the Secretary of State as to the matters to be taken into account in determining the purposes for which and the conditions subject to which the Trustees apply any money under section 25(4).

(3) A body shall comply with any directions that the Secretary of State considers it appropriate to give the body for securing the proper management and control of money paid to the body under section 24.

(4) Directions under subsection (3) may in particular require a body--

(a) to obtain the consent of the Secretary of State before doing anything specified, or of a description specified, in the directions;

(b) to provide the Secretary of State at times specified by him with such information as he may require.

(5) The Secretary of State shall consult a body before giving any directions to it under this section.

27 Power to prohibit distribution in certain cases

(1) Where subsection (2) applies, the Secretary of State may by order prohibit a body from distributing money under section 25(1) to a person specified in the order.

(2) This subsection applies if at the time the order is made--

(a) the person specified is a company of which the body, or a wholly-owned subsidiary of the body, is a member, or

(b) the Secretary of State considers that the body is able (whether directly or indirectly) to control or materially to influence the policy of the person specified in carrying on any undertaking or performing any functions.

(3) In subsection (2)--

(a) "company" means a company formed and registered under the [1985 c. 6.] Companies Act 1985 or the [S.I. 1986/1032 (N.I. 6).] Companies (Northern Ireland) Order 1986 or a company to which the provisions of that Act or Order apply as they apply to a company so formed and registered, and

(b) "wholly-owned subsidiary" has the meaning given by section 736 of that Act or Article 4 of that Order.

(4) Where subsection (5) applies, the Secretary of State may give directions to a body--

(a) prohibiting it from distributing money under section 25(1) to a person in Northern Ireland specified in the directions, or

(b) requiring it to secure that any money distributed by it under section 25(1) to such a person is not applied for a purpose specified in the directions.

(5) This subsection applies if at the time the directions are given the Secretary of State considers that--

(a) a proscribed organisation for the purposes of the [1991 c. 24.] Northern Ireland (Emergency Provisions) Act 1991, or

(b) any other organisation that appears to him to be concerned in terrorism in Northern Ireland or in promoting or encouraging it,

might directly or indirectly derive benefit from the distribution of money to the person specified.

(6) In subsection (5) "benefit" includes benefit of a non-financial nature and, in particular, an enhancement of reputation.

(7) A body may not disclose to any other person either the identity of any person specified in directions given to it under subsection (4) or any information that might lead to the identification of such a person.

(8) A body shall provide the Secretary of State with such information as he may require for the purpose of exercising his powers under this section in relation to the body.

28 Power to amend section 22

(1) The Secretary of State may by order amend section 22(3) so as to substitute different percentages for any of the percentages for the time being specified there.

(2) Any amendment made under this section shall be such that--

(a) no percentage lower than 5 per cent. is specified in section 22(3), and

(b) the percentages specified in section 22(3) amount in total to 100 per cent.

(3) Without prejudice to the generality of section 60(5), an order under this section may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund for distribution by another body specified in section 23.

29 Power to amend section 23

(1) The Secretary of State may by order amend subsection (1), (2), (3) or (4) of section 23 so as--

(a) to substitute a different body for any body for the time being specified in that subsection;

(b) to add another body to the bodies or body for the time being specified in it;

(c) to omit any body for the time being specified in it;

(d) to substitute different percentages for any percentages for the time being specified in it.

(2) Any amendment made under subsection (1) shall be such that the amended subsection--

(a) provides for the whole of the sum mentioned in that subsection to be held for distribution by the one body specified in that subsection, or

(b) provides for the whole of that sum to be held for distribution by the two or more bodies specified in that subsection and specifies, in relation to each of those bodies, what percentage of that sum is to be held for distribution by that body.

(3) The Secretary of State may by order provide that subsection (1), (2), (3) or (4) of section 23 shall, pending the making of an order amending that subsection under subsection (1),--

(a) cease to have effect, or

(b) have effect as if any of the bodies for the time being specified in it were omitted.

(4) Without prejudice to the generality of section 60(5)--

(a) an order made under subsection (1) may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund for distribution by another body (being a body that on the coming into force of the order is specified in the subsection amended by the order);

(b) an order made under subsection (3) may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund in the name of the Secretary of State, pending being held for distribution by another body in accordance with the order to be made under subsection (1).

(5) Without prejudice to the generality of subsection (1), the Secretary of State may exercise his powers under that subsection so as to remove from section 23 any body that has contravened or failed to comply with a requirement or prohibition imposed on it by or under section 26 or 27.



Winding up of fund allocated under section 22(3)(e)

30 Winding up of fund allocated under section 22(3)(e)

(1) In relation to any sum that is paid into the Distribution Fund under section 21(2) after 31st December 2000, section 22(3) shall have effect--

(a) with the omission of paragraph (e), and

(b) subject to any order under section 28 that takes effect after 31st December 2000, with the substitution of higher percentages for the percentages that on that date are specified in paragraphs (a) to (d).

(2) The higher percentages shall bear the same proportion to one another as the percentages for which they are substituted and shall amount in total to 100 per cent.

(3) The Secretary of State may by order substitute a later date for the date that is for the time being specified in subsection (1).



Distribution Fund: further provisions

31 Payments from Distribution Fund in respect of expenses

(1) At such times as the Secretary of State with the approval of the Treasury determines to be appropriate, payments shall be made into the Consolidated Fund out of so much of any money in the Distribution Fund as is held under section 22(2).

(2) The payments shall be of such amounts as the Secretary of State with the approval of the Treasury determines to be appropriate for--

(a) meeting payments made or to be made under paragraph 5 of Schedule 2,

(b) defraying expenses incurred or to be incurred by the Secretary of State in exercising his functions under this Act, and

(c) defraying expenses incurred or to be incurred by the National Debt Commissioners in making investments under section 32.

(3) In determining what amounts are appropriate for meeting the payments referred to in subsection (2)(a), the Secretary of State shall take into account sums paid or to be paid into the Consolidated Fund under section 7(6).

32 Investment of Distribution Fund

(1) So much of any money in the Distribution Fund as is neither held under section 22(2) nor immediately required for making payments under section 24 may be paid over to the National Debt Commissioners and invested by them in accordance with such directions as may be given by the Treasury.

(2) The proceeds of any investment made under subsection (1) or this subsection may be re-invested by the National Debt Commissioners in accordance with such directions as may be given by the Treasury.

(3) The proceeds of any investment made under subsection (1) or (2) shall, if they are not re-invested under subsection (2), be paid into the Distribution Fund and--

(a) to the extent that the proceeds are attributable to the investment of sums paid under subsection (1) out of money held for distribution by a body specified in section 23, held in the Distribution Fund for distribution by that body (subject to any order under section 28 or 29);

(b) to the extent that the proceeds are attributable to the investment of sums paid under subsection (1) out of money held in the name of the Secretary of State by virtue of paragraph (b) of section 29(4), held in the Distribution Fund in his name as mentioned in that paragraph (or where the order under section 29(1) mentioned in that paragraph has been made, held in accordance with that order).

(4) In this section "proceeds", in relation to an investment, means any interest or dividends received in respect of the investment and any sums received on the realisation of the investment.

(5) For the purposes of subsection (3), the extent to which any proceeds are attributable to the investment of sums paid under subsection (1) out of money held for distribution by a particular body or held in the name of the Secretary of State shall be determined by, or in accordance with principles determined by, the Secretary of State.

33 Accounts of the Secretary of State and National Debt Commissioners

(1) The Secretary of State shall prepare accounts in respect of the Distribution Fund in such form, and in such manner and at such times, as the Treasury may direct.

(2) The National Debt Commissioners shall prepare accounts in respect of any investments under section 32 in such form, and in such manner and at such times, as the Treasury may direct.

(3) Each account prepared under subsection (1) or (2) shall be sent to the Comptroller and Auditor General who shall examine, certify and report on it and shall lay copies of it and of his report before Parliament.



Reports and accounts of distributing bodies

34 Annual reports by distributing bodies other than Millennium Commission

(1) As soon as possible after the end of every financial year, each body that in that year was paid any money under section 24 or distributed or applied any money under section 25 shall make a report to the Secretary of State on the exercise during that year of its functions under this Act.

(2) The report shall set out any directions given to the body under section 26 that had effect during the financial year to which the report relates.

(3) The Secretary of State shall lay a copy of every report received by him under this section before Parliament.

(4) This section does not apply to the Millennium Commission.

35 Accounts of distributing bodies other than Charities Board and Millennium Commission

(1) A body shall keep proper accounts in respect of any money paid to it under section 24 and proper records in relation to the accounts.

(2) A body shall prepare a statement of accounts in respect of each financial year in which it was paid any money under section 24 or distributed or applied any money under section 25.

(3) The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(4) Copies of the statement shall be sent to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(5) The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(6) The Secretary of State shall not give a direction under this section without the Treasury's approval.

(7) This section does not apply to the National Lottery Charities Board or to the Millennium Commission.



The Trustees of the National Heritage Memorial Fund

36 Amendment of the National Heritage Act 1980

The [1980 c. 17.] National Heritage Act 1980 shall have effect with the amendments set out in Schedule 4.



The National Lottery Charities Board

37 The National Lottery Charities Board

(1) There shall be a body corporate known as the National Lottery Charities Board.

(2) Schedule 5 makes provision in relation to the Charities Board.

38 Grants to charities etc

(1) The Charities Board may make out of any money they receive grants for meeting the expenditure of charities or of institutions such as are mentioned in paragraph (b) of the definition of "charitable expenditure" in section 44(1).

(2) In making a grant under this section, the Charities Board may impose such conditions as they think fit, including conditions requiring the amount of a grant to be repaid forthwith on breach of any condition.

39 Accounts

(1) The Charities Board shall--

(a) keep proper accounts and proper records in relation to the accounts, and

(b) prepare a statement of accounts in respect of each financial year.

(2) The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(3) Copies of the statement shall be sent to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(4) The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(5) The Secretary of State shall not give a direction under this section without the Treasury's approval.



The Millennium Commission

40 The Millennium Commission

(1) There shall be a body corporate known as the Millennium Commission.

(2) Schedule 6 makes provision in relation to the Millennium Commission.

41 Grants in respect of projects

(1) The Millennium Commission may make out of any money they receive grants to fund or assist in the funding of such projects as the Millennium Commission consider appropriate to mark the year 2000 and the beginning of the third millennium.

(2) In making a grant under this section, the Millennium Commission may impose such conditions as they think fit, including conditions requiring the amount of a grant to be repaid forthwith on breach of any condition.

(3) The Millennium Commission may do anything that they consider desirable for enabling them to determine the projects in respect of which grants under this section are to be made.

42 Annual report

(1) As soon as possible after the end of every financial year, the Millennium Commission shall lay before Parliament a report on the exercise of their functions during that year.

(2) The report shall set out any directions given to the Millennium Commission under section 26 that had effect during the financial year to which the report relates.

43 Accounts

(1) The Millennium Commission shall--

(a) keep proper accounts and proper records in relation to the accounts, and

(b) prepare a statement of accounts in respect of each financial year.

(2) The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(3) Copies of the statement shall be sent to the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(4) The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(5) The Secretary of State shall not give a direction under this section without the Treasury's approval.



Supplementary

44 Interpretation of Part II

(1) In this Part--

  • "charitable expenditure" means expenditure--

    (a)

    by charities, or

    (b)

    by institutions, other than charities, that are established for charitable purposes (whether or not those purposes are charitable within the meaning of any rule of law), benevolent purposes or philanthropic purposes;

  • "the Charities Board" means the National Lottery Charities Board;

  • "the Distribution Fund" means the National Lottery Distribution Fund;

  • "expenditure on or connected with the national heritage" means expenditure for the purpose--

    (a)

    of acquiring, maintaining or preserving (or assisting in the acquisition, maintenance or preservation of) any property of a description mentioned in section 3(1)(a) to (e) of the [1980 c. 17.] National Heritage Act 1980, or

    (b)

    of carrying out (or assisting in the carrying out of) anything mentioned in section 3(2B)(a) to (g) of that Act (as inserted by paragraph 3 of Schedule 4);

  • "financial year", in relation to a body, means--

    (a)

    the period beginning with the date on which the body is established and ending with the next 31st March, and

    (b)

    each successive period of twelve months ending with 31st March.

(2) For the purposes of the definition of "expenditure on or connected with the national heritage" in subsection (1), any reference in section 3 of the National Heritage Act 1980 to the opinion of the Trustees shall be read, in relation to any body other than the Trustees of the National Heritage Memorial Fund that is for the time being specified in section 23(3), as a reference to the opinion of that body.



Part III Miscellaneous Amendments Relating to Lotteries

Preliminary

45 Interpretation of Part III

In this Part "the 1976 Act" means the [1976 c. 32.] Lotteries and Amusements Act 1976.



Importation and exportation restrictions

46 Importation and exportation restrictions

(1) In section 1 of the [1898 c. 46.] Revenue Act 1898 (prohibition on the importation of advertisements and notices relating to lotteries) as it applies in the United Kingdom, after "importation" there shall be inserted "from a place outside the British Islands and the member States".

(2) That section so far as it applies in the British Islands outside the United Kingdom shall cease to have effect.

(3) In section 2(1) of the 1976 Act (general lottery offences)--

(a) in paragraph (d) (bringing or sending lottery tickets or advertisements into Great Britain) after "Great Britain" there shall be inserted "from a place outside the British Islands and the member States", and

(b) in paragraph (e) (sending lottery proceeds etc. out of Great Britain) after "Great Britain" there shall be inserted "to a place outside the British Islands and the member States".

(4) In Article 132(1) of the [S.I. 1985/1204 (N.I. 11).] Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (general lottery offences)--

(a) in paragraph (d) (bringing or sending lottery tickets or advertisements into Northern Ireland) after "Northern Ireland" there shall be inserted "from a place outside the British Islands and the member States", and

(b) in paragraph (f) (sending lottery proceeds etc. out of Northern Ireland) after "Northern Ireland" there shall be inserted "to a place outside the British Islands and the member States".



Private lotteries

47 Private lotteries

For section 4(1) of the 1976 Act (private lotteries) there shall be substituted--

" (1) In this Act "private lottery" means a lottery in Great Britain which is promoted--

(a) for members of one society established and conducted for purposes not connected with gaming, betting or lotteries;

(b) for persons all of whom work on the same premises; or

(c) for persons all of whom reside on the same premises,

and which satisfies the conditions in subsections (1A) and (1B) below.

(1A) The lottery must be promoted by persons each of whom--

(a) is one of the persons for whom the lottery is promoted; and

(b) in the case of a lottery promoted for the members of a society, is authorised in writing by the governing body of the society to promote the lottery.

(1B) The sale of tickets or chances in the lottery must be confined--

(a) to the persons for whom the lottery is promoted; and

(b) in the case of a lottery promoted for the members of a society, to any other persons on the society's premises. "



Societies' lotteries and local lotteries

48 Registration of societies

(1) Section 5 of the 1976 Act (societies' lotteries) shall be amended as follows.

(2) In subsection (3) (conditions that must be satisfied for a lottery not to be unlawful) in paragraph (b) (society to be registered under Schedule 1 to that Act) for "Schedule 1 to this Act" there shall be substituted "the appropriate Schedule".

(3) After subsection (3) there shall be inserted--

" (3A) The appropriate Schedule for the purposes of subsection (3)(b) above--

(a) is Schedule 1 to this Act if none of subsections (3B) to (3D) below applies to the lottery;

(b) is Schedule 1A to this Act if any of those subsections applies to the lottery.

(3B) This subsection applies to a lottery if the total value of the tickets or chances sold or to be sold in the lottery is more than £20,000.

(3C) This subsection applies to a lottery if the total value of--

(a) the tickets or chances sold or to be sold in the lottery, and

(b) the tickets or chances sold or to be sold in all earlier lotteries held by the same society in the same year,

is more than £250,000.

(3D) This subsection applies to a lottery if subsection (3B) or (3C) above applied to any earlier lottery held by the same society in the same year or any of the three preceding years.

(3E) For the purposes of this section--

(a) a lottery is earlier than another lottery if any tickets or chances in it are sold, distributed or offered for sale before any tickets or chances in the other lottery are sold, distributed or offered for sale, and

(b) a lottery is held in the year in which the date of the lottery falls.

(3F) In this section "year" means a period of twelve months beginning with 1st January. "

(4) In subsection (5) (which introduces Schedule 1 to the 1976 Act) for "Schedule 1" there shall be substituted "Schedules 1 and 1A".

(5) Schedule 1 to the 1976 Act (registration of societies) shall have effect with the amendments set out in Part I of Schedule 7 to this Act.

(6) After Schedule 1 to the 1976 Act there shall be inserted the Schedule set out in Part II of Schedule 7 to this Act.

49 Registration of lottery schemes

(1) In section 5(3) of the 1976 Act (conditions that must be satisfied for a society's lottery not to be unlawful) paragraph (d) (lottery scheme to be registered with the Gaming Board if the total value of tickets or chances to be sold in the lottery is more than £10,000) and the word "and" immediately preceding it shall be omitted.

(2) At the end of section 6 of the 1976 Act (local lotteries) there shall be added--

" (4) Schedule 2 to this Act shall have effect. "

(3) Section 9 of the 1976 Act (schemes for societies' lotteries and local lotteries) shall cease to have effect.

(4) Schedule 2 to the 1976 Act (registration of schemes) shall have effect with the amendments set out in Schedule 8 to this Act.

50 Lottery managers

(1) Immediately before section 10 of the 1976 Act there shall be inserted--

" 9A Lottery managers

(1) No person shall manage a society's lottery or a local lottery unless that person is--

(a) a member of the society on whose behalf or of the local authority by whom the lottery is promoted, acting in his capacity as such,

(b) an employee of that society or authority acting in the course of his employment,

(c) in the case of a society's lottery, a company that is wholly owned by the society,

(d) a person certified as a lottery manager under Schedule 2A to this Act, or

(e) an employee of a person so certified acting in the course of his employment.

(2) In subsection (1) above "employee", in relation to an unincorporated body, includes an employee of a member of the body employed by him in his capacity as a member.

(3) For the purposes of subsection (1)(c) above--

(a) "company" means a company formed and registered under the [1985 c. 6.] Companies Act 1985 or a company to which the provisions of that Act apply as they apply to a company so formed and registered, and

(b) a company is wholly owned by a society if the society is entitled (whether directly or through one or more nominees) to exercise, or control the exercise of, the whole of the voting power at any general meeting of the company.

(4) In subsection (1) above and Schedule 2A to this Act references to managing a lottery are to managing the promotion, or any part of the promotion, of a lottery.

(5) Schedule 2A to this Act shall have effect. "

(2) After Schedule 2 to the 1976 Act there shall be inserted the Schedule set out in Schedule 9 to this Act.

51 Frequency of lotteries

For section 10 of the 1976 Act there shall be substituted--

" 10 Frequency of lotteries

(1) The Secretary of State may by order prescribe--

(a) the maximum number of lotteries that may be promoted under section 5 or 6 above in any period of twelve months on behalf of the same society or by the same local authority; and

(b) the minimum number of days that must elapse between the dates of any two lotteries promoted under section 5 or 6 above on behalf of the same society or by the same local authority.

(2) An order under subsection (1) above may make different provision for different cases or circumstances. "

52 Rules for lotteries

(1) Section 11 of the 1976 Act (rules for authorised lotteries) shall be amended as follows.

(2) In subsection (1)(b) (information to be given in the case of a society's lottery on every ticket and every notice or advertisement of the lottery) for the words from "and every notice" to "published" there shall be substituted "distributed or sold".

(3) In subsection (3) (the price of every ticket or chance in a lottery to be the same and to be stated on any ticket) after "any ticket" there shall be inserted "distributed or sold".

(4) After subsection (4) there shall be inserted--

" (4A) No payment other than the price of a ticket or chance shall be required of a person as a condition of his admission to participate in a society's lottery or a local lottery. "

(5) For subsections (5) to (10) there shall be substituted--

" (5) No prize in a society's lottery or a local lottery shall exceed in amount or value £25,000 or 10 per cent. of the total value of the tickets or chances sold in the lottery (whichever is greater).

(6) The total value of the tickets or chances sold in any one such lottery shall not exceed £1,000,000.

(7) The total value of the tickets or chances sold in all such lotteries held in any one year and promoted on behalf of the same society or by the same local authority shall not exceed £5,000,000.

(8) For the purposes of subsection (7) above, a lottery is held in the year in which the date of the lottery falls.

(9) In this section "year" means a period of twelve months beginning with 1st January; but if subsection (7) above (as substituted by section 52 of the National Lottery etc. Act 1993) comes into force on a date other than 1st January--

(a) the period beginning with that date and ending with the next 31st December shall be taken to be the first year for the purposes of that subsection, and

(b) in relation to that period, the reference to £5,000,000 in that subsection shall be read as a reference to a proportionately smaller amount. "

(6) In subsection (11) (not more than half of a lottery's proceeds may be appropriated for the provision of prizes) for "one half" there shall be substituted "50 per cent.".

(7) In subsection (13) (which specifies, in relation to the amount of a lottery's proceeds that may be appropriated on account of expenses, limits that differ according to whether or not the proceeds exceed £10,000)--

(a) for "ВЈ10,000", in both places, there shall be substituted "ВЈ20,000", and

(b) for "25 per cent.", in both places, there shall be substituted "30 per cent."

(8) After subsection (13) there shall be added--

" (14) For the purposes of subsection (12) above, the amount of any expenses that are met--

(a) by the society on whose behalf, or the local authority by whom, the lottery is promoted, or

(b) by any beneficiary of the lottery,

shall be treated as having been appropriated on account of expenses from the proceeds of the lottery.

(15) In subsection (14) above "beneficiary of the lottery" means a person (other than the society on whose behalf, or the local authority by whom, the lottery is promoted) to whom or for whose benefit any of the proceeds of the lottery, other than amounts appropriated in respect of expenses or prizes, are lawfully paid or applied.

(16) The amount of the proceeds of a society's lottery or a local lottery appropriated for the provision of prizes and the amount of those proceeds appropriated on account of expenses (exclusive of prizes) shall not exceed in aggregate a prescribed percentage of the whole proceeds of the lottery. "

53 Offences

(1) Section 13 of the 1976 Act (offences relating to societies' lotteries and local lotteries) shall be amended as follows.

(2) In subsection (1) (contravention of requirement of Act or of regulations made under it) for "or of any regulations made under it" there shall be substituted ", of any regulations made under it or of any order made under section 10 above".

(3) After subsection (2) there shall be inserted--

" (2A) It shall be a defence for a person charged with an offence in respect of a contravention of section 11(5) above to prove--

(a) that the total value of the tickets or chances sold in the lottery fell short of the sum reasonably estimated; and

(b) that the amount or value of the prize in question would n certificate to ot have contravened section 11(5) above if the total value of the tickets or chances sold had amounted to the sum reasonably estimated; and

(c) that, if the amount or value of the prize had been any less, an unconditional undertaking as to prizes given in connection with the sale of tickets or chances would have been broken. "

(4) In subsection (4) (defence in respect of contravention of section 10 etc.) after "contravention of" there shall be inserted "an order made under".

54 Powers of the Secretary of State to vary monetary limits and to prescribe or vary fees

(1) Section 18 of the 1976 Act (powers of the Secretary of State as to monetary limits, fees etc.) shall be amended as follows.

(2) For subsection (1)(a) there shall be substituted--

" (a) vary the sum specified in section 5(3B) or (3C) above; " .

(3) For subsection (1)(b) there shall be substituted--

" (b) vary any sum or percentage specified in section 11 above or prescribe the percentage referred to in subsection (16) of that section; " .

(4) In subsection (1)(e) for "under paragraph 7 of Schedule 2 below" there shall be substituted ", or provide that no fees are to be payable, under paragraph 2, 6 or 10 of Schedule 1A below or paragraph 6A or 7 of Schedule 2 below".

(5) In subsection (1) the word "and" at the end of paragraph (e) shall be omitted and after that paragraph there shall be inserted--

" (ee) vary the sum specified in paragraph 13(1) of Schedule 1A below or paragraph 6D(1) of Schedule 2 below;

(eee) vary the fee payable under paragraph 1 of Schedule 2A below; and " .

(6) In subsection (2) for "subsection (1)(e) above" there shall be substituted "subsection (1) above may make different provision for different cases or circumstances and an order made by virtue of paragraph (e) of that subsection".

55 Interpretation of the 1976 Act

In section 23(1) of the 1976 Act (interpretation) the following definitions shall be inserted in the appropriate places in alphabetical order--

" "employee" and "employment" have the meanings given by section 153(1) of the [1978 c. 44.] Employment Protection (Consolidation) Act 1978 " ;

" "registration authority" has the meaning given by paragraph 1 of Schedule 1 below " .



Part IV Pool Betting

56 Removal of prohibition on the use of premises for the delivery of football pools coupons and stakes

(1) Section 1 of the [1963 c. 2.] Betting, Gaming and Lotteries Act 1963 (restriction on use of premises for betting transactions) shall be amended as follows.

(2) In subsection (1) for "subsection (5)" there shall be substituted "subsections (4A) and (5)".

(3) After subsection (4) there shall be inserted--

" (4A) Subject to subsections (4B) and (4C) of this section, subsection (1)(a) of this section shall not apply to the use of premises as a place where persons may deliver--

(a) completed coupons or other entry forms for qualifying competitions promoted by a registered pool promoter in the course of his pool betting business; and

(b) the stake money in respect of such coupons or other entry forms;

for forwarding to the registered pool promoter.

(4B) Subsection (4A) of this section shall not affect the operation of subsection (1)(a) of this section in relation to any premises of a class or description for the time being prescribed for the purposes of this subsection.

(4C) In subsection (4A) of this section, the reference to coupons or other entry forms for qualifying competitions does not include any coupon or other entry form that can effect entry to a competition that is not a qualifying competition.

(4D) In subsections (4A) and (4C) of this section, "qualifying competition" means a competition--

(a) that is a competition for prizes for making forecasts as to association football games to be played on a Saturday, a Sunday or a day that is a bank holiday in England and Wales or in Scotland under the [1971 c. 80.] Banking and Financial Dealings Act 1971, and

(b) that requires each entry in the competition to consist of a forecast as to at least four such games. "

57 Reduction of age limit in relation to football pool betting

(1) In section 21 of the [1963 c. 2.] Betting, Gaming and Lotteries Act 1963 (betting with young persons) after subsection (2) (definition of "young person") there shall be added--

" (3) In any case concerning--

(a) a bet which is an entry in a qualifying competition (as defined in section 1(4D) of this Act), or

(b) a betting transaction relating to such a bet,

this section shall have effect with the substitution in subsection (2) of "sixteen" for "eighteen".

(4) Subsection (3) of this section does not apply in relation to the employment of a young person in a licensed betting office. "

(2) In section 22 of that Act (betting circulars not to be sent to young persons)--

(a) in subsection (3), for "to be of full age" there shall be substituted "to have attained that age", and

(b) after subsection (3) there shall be added--

" (4) In any case concerning--

(a) a bet which is an entry in a qualifying competition (as defined in section 1(4D) of this Act),

(b) a betting transaction relating to such a bet, or

(c) information as to any game of association football upon which such betting is carried on,

this section shall have effect with the substitution in subsections (1) and (3) of "sixteen" for "eighteen". "

58 Roll-over of prize money

(1) Schedule 2 to the Betting, Gaming and Lotteries Act 1963 (registered pool promoters) shall be amended as follows.

(2) In paragraph 13 (requirements with which the pool betting business of a registered pool promoter must comply) for sub-paragraph (e) there shall be substituted--

" (e) the total amount payable by way of winnings shall, in the case of each competition, be calculated in accordance with paragraph 13A of this Schedule; " .

(3) After paragraph 13 there shall be inserted--

" 13A (1) In any competition the total amount payable by way of winnings shall be the aggregate of--

(a) the total amount of the stakes in respect of entries in the competition, less the relevant percentage of that total amount; and

(b) any amount that has been duly carried over to the competition from a previous competition in accordance with any provision made under paragraph 14A of this Schedule;

less any amount that falls to be carried over from the competition in accordance with any such provision.

(2) In sub-paragraph (1) of this paragraph "relevant percentage" means such percentage as may be determined by the promoter, being--

(a) the same percentage in respect of all his competitions which depend on the same events or on events taking place on the same day; and

(b) a percentage which is determined and notified to the accountant before that day. "

(4) In paragraph 14--

(a) after "paragraph 13(d) or (e)" there shall be inserted "or 13A", and

(b) for "paragraph 13(e)" there shall be substituted "paragraph 13A".

(5) After paragraph 14 there shall be inserted--

" 14A (1) Subject to any directions under paragraph 14B of this Schedule, the rules applicable to any competition may provide that if none of the bets in the competition qualifies for, or for a share in, the first prize--

(a) the amount of that prize shall be carried over to the next relevant competition, or

(b) part of that amount shall be carried over to the next relevant competition and the balance shall be applied as mentioned in paragraph 14(1)(b) of this Schedule.

(2) In sub-paragraph (1) of this paragraph--

(a) "the first prize" means the highest prize that can be won, having regard to the outcome of the events on which the competition depends (and not any higher prize that could have been won had the outcome of those events been different),

(b) "the next relevant competition" means the next competition to be held by the same registered pool promoter under the same rules within the fourteen days following the day on which the result of the competition is determined, and

(c) the reference in paragraph (b) to part of the amount referred to in paragraph (a) is to such proportion of that amount as may be specified in the rules or as may be determined by the promoter in accordance with the rules.

14B (1) The Secretary of State may direct that any provision made under paragraph 14A of this Schedule--

(a) is not to have effect, or

(b) is to have effect subject to such limitations as are specified in the direction.

(2) The limitations that may be specified under sub-paragraph (1)(b) of this paragraph include--

(a) limitations as to the number of competitions from which amounts may be carried over, and

(b) limitations as to the period within which any such competitions may be held.

(3) Any directions under this paragraph shall be given in writing and may be varied or revoked by subsequent directions. "

(6) In paragraph 15--

(a) after "paragraph 13(d) or (e)" there shall be inserted "or 13A", and

(b) for "paragraph 13(e)" there shall be substituted "paragraph 13A".

(7) In paragraph 20(1) (information relating to a competition which the promoter is required to include in a statement to the accountant) after paragraph (b) there shall be inserted--

" (bb) the amount (if any) carried over to the competition from a previous competition in accordance with any provision made under paragraph 14A of this Schedule;

(bbb) the amount (if any) carried over from the competition in accordance with any such provision; " .

(8) In paragraph 21 (statement as to commission and expenses which the promoter is required to send to every competitor in a competition)--

(a) in sub-paragraph (1)(a) for the words from "after deducting" to the end there shall be substituted "after making in respect of each of those competitions the deductions mentioned in sub-paragraph (1A) of this paragraph;", and

(b) after sub-paragraph (1) there shall be inserted--

" (1A) In relation to any competition, the deductions referred to are--

(a) a deduction of the aggregate of the total amount payable by way of winnings in the competition and any amount carried over from the competition in accordance with any provision made under paragraph 14A of this Schedule, less any amount carried over to the competition in accordance with any such provision, and

(b) a deduction of the amount of pool betting duty payable in respect of the competition. "

(9) In paragraph 23(1) (content of annual statement to be sent by registered pool promoter to accountant and registering authority) in paragraph (b) for the words from "after deducting" to the end there shall be substituted "after making in respect of each of those competitions the deductions mentioned in paragraph 21(1A) of this Schedule;".

59 Pool promoters' dividends

(1) Paragraph 14 of Schedule 2 to the [1963 c. 2.] Betting, Gaming and Lotteries Act 1963 (provision which may be made in rules applicable to competitions promoted by registered pool promoters) shall be amended as follows.

(2) In sub-paragraph (c) (provision for rounding winnings up or down by a specified sum) for "sixpence", in both places, there shall be substituted "20 pence".

(3) For "sub-paragraph (c) of this paragraph" there shall be substituted "paragraph (c) of this sub-paragraph".

(4) The provisions of paragraph 14 as amended by section 58(4) and subsections (2) and (3) shall become sub-paragraph (1) of that paragraph and the following sub-paragraph shall be added at the end--

" (2) The Secretary of State may by order made by statutory instrument vary the sum for the time being specified in sub-paragraph (1)(c) of this paragraph; and an instrument containing such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament. "



Part V Supplementary

60 Orders and regulations

(1) Any power to make an order or regulations under this Act shall be exercisable by statutory instrument.

(2) An order shall not be made under section 28 or 30 unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

(3) A statutory instrument containing any order or regulations under this Act, other than an order under section 28, 30 or 65, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) Any order or regulations under this Act may make different provision for different cases or circumstances.

(5) Any order or regulations under this Act may make such incidental, supplemental and transitional provision as the person making the order or regulations thinks appropriate.

61 Directions

Any directions under this Act shall be given in writing and may be varied or revoked by subsequent directions.

62 Expenses

There shall be paid out of money provided by Parliament--

(a) any expenses of the Secretary of State or the National Debt Commissioners attributable to this Act, and

(b) any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

63 Northern Ireland

(1) This Act extends to Northern Ireland (except so far as it amends enactments that do not extend there).

(2) Subject to any Order made after the passing of this Act by virtue of section 3(1)(a) of the [1973 c. 36.] Northern Ireland Constitution Act 1973, matters relating to the National Lottery that are not excepted matters for the purposes of that Act shall not be transferred matters for those purposes but shall for the purposes of section 3(2) of that Act be treated as specified in Schedule 3 to that Act.

64 Repeals

The enactments mentioned in Schedule 10 are repealed to the extent specified in the third column of that Schedule.

65 Commencement

This Act shall come into force on such date as the Secretary of State may by order appoint; and different dates may be so appointed for different provisions or for different purposes.

66 Short title

This Act may be cited as the National Lottery etc. Act 1993.

SCHEDULES

Section 2.

SCHEDULE 1 Legality etc. of lotteries forming part of the National Lottery



The Gaming Act 1968 (c. 65)

1 In section 52(3) of the Gaming Act 1968 (circumstances in which a lottery does not constitute gaming) after "the Lotteries and Amusements Act 1976" there shall be inserted "or a lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993,".



The Lotteries and Amusements Act 1976 (c. 32)

2 (1) In section 1 of the Lotteries and Amusements Act 1976 (illegality of lotteries) after "except as provided by this Act" there shall be added "and section 2(1) of the National Lottery etc. Act 1993".

(2) In section 2 of that Act (general lottery offences) at the end of subsection (2) (defences) there shall be added-- " ; or

(d) that the lottery to which the proceedings relate was a lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993 or that at the date of the alleged offence the person charged believed, and had reasonable ground for believing, it to be such a lottery. "



The Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (S.I. 1985/1204 (N.I. 11))

3 (1) In Article 2(3) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (circumstances in which a lottery does not constitute gaming) after "Article 133, 134 or 135" there shall be inserted "or a lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993".

(2) In Article 131 of that Order (illegality of lotteries) after "Schedule 20" there shall be inserted "and to section 2(1) of the National Lottery etc. Act 1993".

(3) In Article 132 of that Order (general lottery offences) at the end of paragraph (2) (defences) there shall be added-- " ; or

(d) that the lottery to which the proceedings relate was a lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993 or that at the date of the alleged offence the person charged believed, and had reasonable ground for believing, it to be such a lottery. "



Section 3.

SCHEDULE 2 The Director General of the National Lottery



Tenure of office

1 (1) Subject to the following provisions of this paragraph, a person shall hold and vacate office as Director General in accordance with the terms of his appointment.

(2) A person shall not be appointed to hold office as Director General for a term of more than five years.

(3) At the end of a term of appointment as Director General a person shall be eligible for re-appointment.

(4) The Secretary of State may remove a person from office as Director General on the ground of incapacity or misbehaviour.



Remuneration etc.

2 (1) The Director General shall be paid such remuneration and such travelling and other allowances as the Secretary of State may determine.

(2) Where the Secretary of State so determines in the case of a holder of the office of Director General--

(a) such pension, allowances or gratuities as the Secretary of State may determine shall be paid to or in respect of him, or

(b) such payments as the Secretary of State may determine shall be made towards the provision of a pension, allowances or gratuities to or in respect of him.

(3) If the Secretary of State determines that there are special circumstances that make it right for a person ceasing to hold office as Director General to receive compensation, such compensation as the Secretary of State may determine may be paid to him.

(4) A determination under this paragraph shall not have effect unless it has been approved by the Treasury.



Staff

3 The Director General may appoint such staff as he may determine, subject to the Treasury approving their number and the terms and conditions of their service.

4 Anything authorised or required by or under any enactment to be done by the Director General may be done by any member of his staff who has been authorised by him (whether generally or specially) for that purpose.



Finance

5 There shall be paid out of money provided by Parliament--

(a) the remuneration of the Director General and any other payments made under paragraph 2, and

(b) such sums as are necessary to defray any expenses incurred by the Director General.



Evidence

6 A document purporting to be duly executed under the seal of the Director General or to be signed by him or on his behalf shall be received in evidence and, unless the contrary is proved, taken to be so executed or signed.



The Parliamentary Commissioner

7 In the [1967 c. 13.] Parliamentary Commissioner Act 1967, in Schedule 2 (departments and authorities subject to investigation), the following entry shall be inserted at the appropriate place-- " Office of the Director General of the National Lottery. "



The Council on Tribunals

8 (1) In section 7 of the [1992 c. 53.] Tribunals and Inquiries Act 1992 (which restricts Ministers' powers to remove members of tribunals listed in Schedule 1 to that Act) in subsection (2) (tribunals to which that section does not apply) after "33(a)," there shall be inserted "33A,".

(2) In Schedule 1 to that Act (tribunals under the supervision of the Council on Tribunals) after paragraph 33 there shall be inserted--



" National Lottery

33A The Director General of the National Lottery in respect of his functions under section 10 of and Schedule 3 to the National Lottery etc. Act 1993 (c. 39), and any member of the Director General's staff authorised under paragraph 4 of Schedule 2 to that Act to exercise any of those functions. "



Parliamentary disqualification

9 (1) In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), the following entry shall be inserted at the appropriate place-- " Director General of the National Lottery. "

(2) The same entry shall be inserted at the appropriate place in Part III of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.



Section 10.

SCHEDULE 3 Revocation of licences



Part I Discretionary grounds for revocation

1 A condition in the licence has been contravened.

2 Any information given by the licensee to the Director General--

(a) in or in connection with the application for the licence,

(b) in pursuance of a condition in the licence, or

(c) in making representations under section 8(2) or Part II of this Schedule,

was false in a material particular.

3 (1) A proposal for a voluntary arrangement under Part I of the [1986 c. 45.] Insolvency Act 1986 or Part II of the [S.I. 1989/2405 (N.I. 19).] Insolvency (Northern Ireland) Order 1989 has been made in relation to the licensee.

(2) A petition for an administration order to be made in respect of the licensee or for the winding up of the licensee has been presented to the court.

(3) A resolution for the voluntary winding up of the licensee has been passed.

(4) A receiver or manager of the whole or any part of the licensee's property has been appointed.

4 In the case of a licence granted under section 5--

(a) the licensee is not providing or proposing to provide facilities that are necessary or desirable for running the National Lottery;

(b) any person who is managing the business or any part of the business of running the National Lottery under the licence is not a fit and proper person to do so;

(c) any person for whose benefit that business is carried on is not a fit and proper person to benefit from it.

5 In the case of a licence granted under section 6--

(a) the licensee is not taking or proposing to take steps that are necessary or desirable for preventing the commission of fraud by participants in any lottery promoted under the licence;

(b) a person who is managing the business or any part of the business of promoting lotteries under the licence is not a fit and proper person to do so;

(c) a person for whose benefit that business is carried on is not a fit and proper person to benefit from it.



Part II Procedure and appeals

Notice of proposed revocation

6 (1) Where the Director General proposes to revoke a licence, he shall serve a notice on the licensee stating--

(a) that he proposes to revoke the licence,

(b) the ground or grounds for revocation,

(c) that the licensee may within the period of twenty-one days beginning with the date of the notice either make written representations about the matter to him or notify him in writing of the licensee's intention to make oral representations, and

(d) the effect of sub-paragraph (2).

(2) If, within the period mentioned in sub-paragraph (1)(c), the Director General receives neither written representations nor written notification of the licensee's intention to make oral representations, the revocation shall take effect at the end of that period.



Suspension of licence

7 (1) The Director General may suspend a licence as from the date of any notice served in respect of it under paragraph 6 if--

(a) he reasonably believes that the ground or any of the grounds specified in the notice involves fraud by the licensee, or

(b) the ground or one of the grounds specified in the notice is the ground set out in paragraph 5(a).

(2) Where a licence is suspended under this paragraph--

(a) the suspension shall last until the revocation takes effect or the Director General decides not to revoke the licence or the Secretary of State allows an appeal against the revocation, and

(b) the notice shall inform the licensee accordingly.



Decision by the Director General

8 (1) The Secretary of State may make regulations as to the procedure to be followed where a licensee's intention to make oral representations is notified to the Director General as mentioned in paragraph 6(1)(c).

(2) The regulations may in particular make provision--

(a) for the revocation of the licence to take effect if the licensee fails to comply with any requirements imposed by or under the regulations, and

(b) as to the hearing by the Director General of oral representations.

9 (1) If any written representations against the revocation of a licence are made as mentioned in paragraph 6(1)(c) or any oral representations against the revocation of a licence are made in accordance with regulations under paragraph 8, the Director General shall after taking the representations into account--

(a) decide whether or not to revoke the licence, and

(b) serve a further notice on the licensee informing the licensee of his decision and (if the case so requires) of the effect of sub-paragraph (2).

(2) Where the decision is to revoke the licence, the revocation shall not take effect--

(a) until the end of such period as may be specified in the further notice, or

(b) if within that period the licensee appeals against the revocation to the Secretary of State, until the Secretary of State determines the appeal.

(3) The period specified in the further notice shall be a period of at least twenty-eight days beginning with the date of that notice.



Appeals to the Secretary of State

10 The Secretary of State may make regulations as to the manner of making appeals to him against the revocation of a licence and the procedure to be followed in relation to such appeals.



Section 36.

SCHEDULE 4 Amendment of the National Heritage Act 1980 (c. 17)

1 In section 1(2) (constitution of the Trustees of the National Heritage Memorial Fund) for "ten" there shall be substituted "fourteen".

2 In section 2 (payments into the National Heritage Memorial Fund) after subsection (1) there shall be inserted--

" (1A) The Trustees shall pay into the Fund any sums paid to them under section 24 of the National Lottery etc. Act 1993. "

3 (1) Section 3 (grants and loans from the National Heritage Memorial Fund) shall be amended as follows.

(2) In subsection (2) for "this section" there shall be substituted "subsection (1) above".

(3) After subsection (2) there shall be inserted--

" (2A) Notwithstanding that an object such as is mentioned in subsection (1)(b) above or a collection or group of objects such as is mentioned in subsection (1)(c) above is not itself of importance to the national heritage, the Trustees may make a grant or loan under subsection (1) above for the purpose of assisting in its acquisition if--

(a) they are satisfied that after its acquisition it will form part of a collection or group of objects such as is mentioned in subsection (1)(c) above, and

(b) after obtaining such expert advice as appears to them to be appropriate, they are of opinion that that collection or group is of importance to the national heritage.

(2B) Subject to the provisions of this section, the Trustees may make grants out of the Fund to eligible recipients for the purpose of assisting them--

(a) to construct, acquire or improve any building designed to house objects which, either individually or as a collection or group, in the opinion of the Trustees are of outstanding historic, artistic or scientific interest;

(b) to convert any building, or to acquire any building for the purpose of converting it, into a building of the description mentioned in paragraph (a) above;

(c) to acquire any land on which a building of the description mentioned in paragraph (a) above is to be constructed;

(d) to construct, acquire or improve any building the only or principal purpose of which is, or is to be, to provide facilities--

(i) designed to promote the public's enjoyment, or advance the public's knowledge, of any property of a description mentioned in subsection (1)(a), (b) or (c) above; and

(ii) provided in connection with public access to, or the public display of, that property;

(e) to convert any building, or to acquire any building for the purpose of converting it, into a building of the description mentioned in paragraph (d) above;

(f) to acquire any land on which a building of the description mentioned in paragraph (d) above is to be constructed;

(g) to preserve or maintain any building or land in respect of which a grant has been or is to be made under any of paragraphs (a) to (f) above.

(2C) The Trustees shall not make a grant under subsection (2B) above unless, after obtaining such expert advice as appears to them to be appropriate, they are of opinion--

(a) in the case of a grant under paragraph (a), (b) or (c) of that subsection or a grant under paragraph (g) of that subsection where a grant under paragraph (a), (b) or (c) has been or is to be made, that the objects housed or to be housed in the building are, either individually or as a collection or group, of importance to the national heritage; or

(b) in the case of a grant under paragraph (d), (e) or (f) of that subsection or a grant under paragraph (g) of that subsection where a grant under paragraph (d), (e) or (f) has been or is to be made, that the property in relation to which the facilities in question are or are to be provided is of importance to the national heritage. "

(4) At the end of subsection (3) there shall be added "(or, in the case of a grant such as is mentioned in subsection (2C)(a) above, objects housed on the property or, in the case of a grant such as is mentioned in subsection (2C)(b) above, the property in relation to which the facilities in question are provided)".

(5) At the end of subsection (4)(a)(i) there shall be inserted "(or, in the case of a grant such as is mentioned in subsection (2C)(a) above, objects housed on the property or, in the case of a grant such as is mentioned in subsection (2C)(b) above, the property in relation to which the facilities in question are provided)".

(6) In subsection (6)(d) (the Secretary of State acting in the discharge of certain functions is an "eligible recipient") the words from "acting" to "1979" shall be omitted.

(7) After subsection (6) there shall be inserted--

" (6A) Where the Secretary of State receives a sum by way of a grant or loan under this section he may, with the consent of the Treasury, instead of paying it into the Consolidated Fund, apply it as money provided by Parliament. "

4 In section 4(2) (application of section 3(2) and (3) in relation to other expenditure out of National Heritage Memorial Fund) after "(2)" there shall be inserted ", (2A)".

5 In section 6(2) (investment of sums paid into the National Heritage Memorial Fund under section 2(1)) after "section 2(1)" there shall be inserted "or (1A)".

6 In section 17 (expenses and receipts) after "and" there shall be inserted "subject to section 3(6A) above".

7 In paragraph 5(1) of Schedule 1 (expenses of Trustees to be defrayed out of the National Heritage Memorial Fund) for "under this Act shall" there shall be substituted "may".



Section 37.

SCHEDULE 5 The National Lottery Charities Board



Membership

1 (1) The Charities Board shall consist of a chairman and sixteen other members, all of whom shall be appointed by the Secretary of State.

(2) The Secretary of State may by order increase the number of members for the time being specified in sub-paragraph (1).



Committees

2 (1) The Charities Board shall establish four committees for the purpose of exercising the Board's functions in relation to applications by charities for grants in respect of appropriate activities in England, Scotland, Wales and Northern Ireland respectively.

(2) In sub-paragraph (1)--

  • "appropriate activities" means activities in relation to which the Charities Board consider it appropriate to delegate their functions to a committee established under that sub-paragraph, and

  • "charities" includes institutions such as are mentioned in paragraph (b) of the definition of "charitable expenditure" in section 44(1).

(3) Subject to sub-paragraph (1), any function of the Charities Board may be exercised by any committee of theirs authorised by them (whether generally or specially) for that purpose.

(4) A committee of the Charities Board shall consist of a chairman and two or more other members.

(5) Subject to sub-paragraph (6), all the members of a committee of the Charities Board shall be members of the Board.

(6) In the case of a committee other than one established under sub-paragraph (1), any member other than the chairman may be a person who is not a member of the Charities Board but is appointed to the committee by the Secretary of State at the Board's request.



Tenure of office

3 (1) Subject to the following provisions of this paragraph, a person shall hold and vacate office as chairman or other member of the Charities Board or a committee of theirs in accordance with the terms of his appointment.

(2) The Secretary of State shall not appoint a person to hold office as a member of the Charities Board or a committee of theirs for a term of more than five years.

(3) A chairman or member of the Charities Board or a person appointed to a committee of theirs by the Secretary of State may at any time resign his office by notice in writing addressed to the Secretary of State.

(4) A member of the Charities Board or a person appointed to a committee of theirs by the Secretary of State may be removed from office by the Secretary of State on the ground that--

(a) he has been absent for a period longer than three consecutive months from meetings of the Board without the Board's consent or (as the case may be) from meetings of the committee without the committee's consent,

(b) a bankruptcy order has been made against him or his estate has been sequestrated or he has made a composition or arrangement with, or granted a trust deed for, his creditors, or

(c) he is unable or unfit to discharge the functions of his office.

(5) If a chairman of the Charities Board or a committee of theirs ceases to be a member of the Board he shall also cease to be chairman.

(6) A person who ceases, otherwise than by virtue of sub-paragraph (4), to be a member or chairman of the Charities Board or a committee of theirs shall be eligible for re-appointment.



Remuneration and allowances

4 (1) The Charities Board may pay--

(a) such remuneration to their chairman and the chairman of any committee of theirs, and

(b) such travelling and other allowances to their chairman and any other member of the Board or any committee of theirs,

as the Secretary of State may determine.

(2) Where the Secretary of State so determines in the case of a holder of the office of chairman of the Charities Board or chairman of a committee of the Charities Board, the Charities Board shall--

(a) pay to or in respect of him such pension, allowances or gratuities, or

(b) make such payments towards the provision of a pension, allowances or gratuities to or in respect of him,

as the Secretary of State may determine.

(3) If the Secretary of State determines that there are special circumstances that make it right for a person ceasing to hold office as chairman of the Charities Board or of a committee of the Charities Board to receive compensation, the Charities Board may pay to him such compensation as the Secretary of State may determine.

(4) A determination under this paragraph shall not have effect unless it has been approved by the Treasury.



Staff

5 (1) The Charities Board may appoint such staff as they may determine with the Secretary of State's approval as to numbers and terms and conditions of service.

(2) The Charities Board may with the Secretary of State's approval--

(a) pay such pensions, allowances or gratuities to or in respect of any persons who have been or are members of their staff as they may determine;

(b) make such payments as they may determine towards the provision of pensions, allowances or gratuities to or in respect of any such persons;

(c) provide and maintain such schemes as they may determine (whether contributory or not) for the payment of pensions, allowances or gratuities to or in respect of any such persons.

(3) Any reference in sub-paragraph (2) to pensions, allowances or gratuities to or in respect of any such persons as are mentioned in that sub-paragraph includes pensions, allowances or gratuities by way of compensation to or in respect of any members of the Charities Board's staff who suffer loss of office or employment.

(4) The Secretary of State shall not give an approval under this paragraph without the Treasury's consent.



Proceedings

6 (1) Subject to the provisions of this Schedule, the Charities Board may regulate their own procedure and that of any of their committees (and in particular may specify a quorum for meetings).

(2) The quorum for meetings of any committee of the Charities Board shall not be less than three.

(3) No committee of the Charities Board may exercise any function of the Board at a meeting unless one of the members present is a member of the Board.

(4) The validity of any proceedings of the Charities Board shall not be affected by any vacancy among their members, or by any defect in the appointment of any person as chairman or a member.



Application of seal and evidence

7 The application of the seal of the Charities Board shall be authenticated by the signature--

(a) of any member of the Charities Board, or

(b) of any other person who has been authorised by the Charities Board (whether generally or specially) for that purpose.

8 A document purporting to be duly executed under the seal of the Charities Board or to be signed on their behalf shall be received in evidence and, unless the contrary is proved, taken to be so executed or signed.



Finance

9 Until such time as the Secretary of State considers that the sums paid to the Charities Board under section 24 are sufficient to enable them to meet under section 25(3) the expenses incurred by them in exercising their functions under this Act, he shall pay to the Charities Board such sums as are necessary to defray those expenses.



Status of the Board

10 The Charities Board shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.



Parliamentary disqualification

11 (1) In the [1975 c. 24.] House of Commons Disqualification Act 1975, in Part III of Schedule 1 (other disqualifying offices), the following entry shall be inserted at the appropriate place-- " Chairman of the National Lottery Charities Board and any chairman of a committee of that Board. "

(2) The same entry shall be inserted at the appropriate place in Part III of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.



Exemption from register of charities

12 In Schedule 2 to the [1993 c. 10.] Charities Act 1993 (which lists the institutions that so far as they are charities are exempt charities within the meaning of that Act) there shall be added at the end--

" (zb) the National Lottery Charities Board. "



Section 40.

SCHEDULE 6 The Millennium Commission



Membership

1 (1) The Millennium Commission shall consist of nine members appointed by Her Majesty on the recommendation of the Prime Minister, of whom--

(a) two shall be Ministers of the Crown, and

(b) one shall be a person nominated by the Leader of the Opposition.

(2) Her Majesty shall, on the recommendation of the Prime Minister, appoint one of the members who are Ministers of the Crown to be chairman.

(3) In this paragraph "the Leader of the Opposition" means the member of the House of Commons who is the leader in that House of the party in opposition to Her Majesty's Government that has the greatest numerical strength in that House.

(4) If any doubt arises (whether in relation to this paragraph or in relation to paragraph 5) as to--

(a) who is or was the Leader of the Opposition at any time, or

(b) which is or was the party in opposition to Her Majesty's Government that has or had the greatest numerical strength in the House of Commons at any time,

the question shall be decided by the Speaker of the House of Commons, whose decision shall be final.

2 (1) Subject to sub-paragraph (2), after 31st December 2000 the Secretary of State may by order--

(a) reduce the total number of members of the Millennium Commission for the time being specified in paragraph 1(1);

(b) substitute the following for paragraph 1(1)(a)--

" (a) one shall be a Minister of the Crown, and " .

(2) An order under sub-paragraph (1) shall not--

(a) reduce the total number of members of the Millennium Commission to less than three, or

(b) result in more than one third of the members being Ministers of the Crown.



Tenure of office

3 Subject to paragraphs 4 and 5, a person shall hold and vacate office as chairman or a member of the Millennium Commission in accordance with the terms of his appointment.

4 (1) A chairman or member may at any time resign his office by notice in writing addressed to Her Majesty.

(2) Her Majesty may remove a person from office as a member on the ground that--

(a) he has been absent from meetings of the Millennium Commission for a period longer than three consecutive months without the Commission's consent,

(b) a bankruptcy order has been made against him or his estate has been sequestrated or he has made a composition or arrangement with, or granted a trust deed for, his creditors, or

(c) he is unable or unfit to discharge the functions of a member.

(3) If a chairman ceases to be a member he shall also cease to be chairman.

(4) A person who ceases to be a member, otherwise than by virtue of sub-paragraph (2), or ceases to be chairman shall be eligible for re-appointment.

5 The member referred to in paragraph 1(1)(b) shall cease to hold office if the party by the leader of which he was nominated ceases to be the party in opposition to Her Majesty's Government that has the greatest numerical strength in the House of Commons.



Allowances

6 The Millennium Commission may pay such travelling and other allowances to their members as the Secretary of State may, with the Treasury's approval, determine.



Staff

7 (1) The Millennium Commission may appoint such staff as they may determine with the Secretary of State's approval as to numbers and terms and conditions of service.

(2) The Millennium Commission may with the Secretary of State's approval--

(a) pay such pensions, allowances or gratuities to or in respect of any persons who have been or are members of their staff as they may determine;

(b) make such payments as they may determine towards the provision of pensions, allowances or gratuities to or in respect of any such persons;

(c) provide and maintain such schemes as they may determine (whether contributory or not) for the payment of pensions, allowances or gratuities, to or in respect of any such persons.

(3) Any reference in sub-paragraph (2) to pensions, allowances or gratuities to or in respect of any such persons as are mentioned in that sub-paragraph includes pensions, allowances or gratuities by way of compensation to or in respect of any members of the Millennium Commission's staff who suffer loss of office or employment.

(4) The Secretary of State shall not give an approval under this paragraph without the Treasury's consent.



Proceedings

8 (1) Subject to the provisions of this Schedule, the Millennium Commission may regulate their own procedure (and in particular may specify a quorum for meetings).

(2) The validity of any proceedings of the Millennium Commission shall not be affected by any vacancy among their members, or by any defect in the appointment of any person as a member.



Application of seal and evidence

9 The application of the seal of the Millennium Commission shall be authenticated by the signature--

(a) of any member of the Millennium Commission, or

(b) of any other person who has been authorised by the Millennium Commission (whether generally or specially) for that purpose.

10 A document purporting to be duly executed under the seal of the Millennium Commission or to be signed on their behalf shall be received in evidence and, unless the contrary is proved, taken to be so executed or signed.



Finance

11 Until such time as the Secretary of State considers that the sums paid to the Millennium Commission under section 24 are sufficient to enable them to meet under section 25(3) the expenses incurred by them in exercising their functions under this Act, he shall pay to the Millennium Commission such sums as are necessary to defray those expenses.



Status of the Millennium Commission

12 The Millennium Commission shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown.

13 In Schedule 1 to the [1958 c. 51.] Public Records Act 1958 (definition of public records), the following entry shall be inserted at the appropriate place in Part II of the Table at the end of paragraph 3-- " Millennium Commission. "



Section 48.

SCHEDULE 7 Registration of societies



Part I Amendment of Schedule 1 to the 1976 Act

1 For the heading "Registration of Societies" there shall be substituted "Registration of Societies by Local Authorities".

2 In paragraph 1--

(a) sub-paragraph (1) (which requires every application for the registration of a society to be made to the registration authority) shall be omitted, and

(b) in sub-paragraph (2) (definition of "registration authority") for "In this Schedule" there shall be substituted "In this Act".

3 In paragraph 2 (purposes for which the society is established and conducted to be specified in such an application) for "Any such application" there shall be substituted "An application to the registration authority for the registration of a society".

4 After paragraph 3 there shall be inserted--

" 3A (1) The registration authority shall refuse or revoke the registration of the society under this Part of this Schedule if the Board have refused or revoked the registration of the society under Schedule 1A below within the last five years.

(2) Sub-paragraph (1) above does not apply where the ground for the Board's refusal or revocation was that specified in paragraph 3(2)(e) of Schedule 1A below.

(3) Where the registration authority refuse or revoke the registration of a society under sub-paragraph (1) above, they shall notify the society in writing that they have done so. "

5 (1) In paragraph 4 (grounds on which the registration authority have a discretion to refuse or revoke the society's registration)--

(a) for sub-paragraph (1)(a) there shall be substituted--

" (a) that any person who is or will be a person connected with a lottery promoted or proposed to be promoted on behalf of the society has been convicted of an offence to which this paragraph applies; or " ,

(b) after sub-paragraph (1)(b) there shall be inserted-- " ; or

(c) that any information given by the society to the authority in or in connection with the society's application for registration was false in a material particular. " ,

(c) in sub-paragraph (2) (offences to which paragraph 4 applies) after "an offence under paragraph 14 below" there shall be inserted ", paragraph 14 of Schedule 1A below, paragraph 8 or 9 of Schedule 2 below, paragraph 12 of Schedule 2A below", and

(d) after sub-paragraph (2) there shall be added--

" (3) For the purposes of sub-paragraph (1)(a) above, a person connected with a lottery is a person who is or has been--

(a) involved in the promotion of the lottery; or

(b) employed for reward in connection with the promotion of any other lottery on behalf of the same society. "

(2) After paragraph 4 there shall be inserted--

" 4A The registration authority may, after giving the society an opportunity of being heard, revoke the registration of the society under this Part of this Schedule if it appears to the authority that the society has failed to comply with a requirement imposed on it under paragraph 16 below. "

6 In paragraphs 5, 6 and 7 (appeals against refusal or revocation of registration under paragraph 4) for "paragraph 4" there shall be substituted "paragraph 4 or 4A".

7 In paragraph 11 (returns to be made in respect of a society's lottery) after sub-paragraph (c) there shall be inserted--

" (cc) whether any expenses were met otherwise than out of proceeds of the lottery and, if so, the amount and source of any sums used to meet them; " .

8 In paragraph 12 (return not required in respect of a lottery promoted in accordance with a scheme registered with the Gaming Board) for "promoted in accordance with a scheme registered with the Board" there shall be substituted "if on the date of the lottery the society was registered with the Board under Schedule 1A below".

9 After paragraph 14 there shall be added--

" 15 (1) Where it appears to the registration authority that section 5(3C) above applies to a lottery in respect of which a return has been sent to them under paragraph 11 above, they shall notify the Board in writing of that fact.

(2) The notification shall have attached to it a copy of the return and of all other returns sent to the registration authority in respect of the earlier lotteries mentioned in section 5(3C)(b) above.

16 The registration authority may require a society that is registered under this Part of this Schedule--

(a) to allow the authority to inspect and take copies of any documents of the society, including any information kept by the society otherwise than in writing, relating to any lottery promoted on behalf of the society; and

(b) where such information is kept by means of a computer, to give the authority such assistance as they may require to enable them to inspect and take copies of the information in a visible and legible form and to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information. "



Part II Schedule to be inserted in the 1976 Act after Schedule 1



" Schedule 1A Registration of Societies by the Gaming Board



Part I Registration

1 An application to the Board for the registration of a society shall--

(a) specify the address of the office or head office of the society,

(b) specify the purposes for which the society is established and conducted, and

(c) have attached to it a copy of any scheme approved by the society under section 5(3)(c) above.

2 (1) Subject to the provisions of this Schedule, upon application being duly made on behalf of a society and upon payment of a prescribed fee, the Board shall register the society in a register to be kept for the purposes of section 5 above and notify the society in writing that they have done so.

(2) Any fees received by the Board by virtue of this paragraph shall be paid into the Consolidated Fund.

3 (1) The Board shall refuse or revoke the registration of a society under this Schedule if any scheme attached to its application for registration, or any other scheme subsequently approved by the society under section 5(3)(c) above, is contrary to law.

(2) The Board may refuse or revoke the registration of a society under this Schedule if it appears to the Board--

(a) that the ground specified in paragraph 4(1)(a) or (b) of Schedule 1 above applies;

(b) that any information given by the society to the Board in or in connection with the society's application for registration was false in a material particular;

(c) that the address of the office or head office of the society is the same as that of the office or head office of another society that is established for the same or a connected purpose and is registered under this Schedule;

(d) that any lottery promoted on behalf of the society within the last five years has not been properly conducted;

(e) that any fees payable by the society under this Act have not been paid;

(f) that the society has failed to comply with a requirement imposed on it under paragraph 12 below; or

(g) that an act or omission of a person who is or will be a person connected with a lottery promoted or proposed to be promoted on behalf of the society was a cause--

(i) of the registration of another society being refused or revoked on the ground specified in paragraph (b) or (f) above or under sub-paragraph (5) below;

(i) of the registration of a scheme being refused or revoked on a ground specified in paragraph 3(1)(e) or 4(2)(c) of Schedule 2 below; or

(iii) of a relevant lottery, in the promotion of which the person was involved, not being properly conducted.

(3) In considering whether sub-paragraph (2)(g) above applies, the Board shall disregard any act or omission that occurred more than five years previously.

(4) For the purposes of sub-paragraph (2)(g) above--

(a) a person connected with a lottery is a person who is or has been--

(i) involved in the promotion of the lottery; or

(ii) employed for reward in connection with the promotion of any other lottery on behalf of the same society; and

(b) "relevant lottery", in relation to a society and a person, means a lottery promoted--

(i) on behalf of another society that at the time of the person's involvement with the promotion of the lottery was registered with the Board; or

(ii) under a scheme that at the time of the person's involvement with the promotion of the lottery was registered with the Board.

(5) The Board may revoke the registration of a society under this Schedule if it appears to the Board that the society has failed to comply with a requirement imposed on it by or under paragraph 7, 8, 9, 11 or 13 below.

(6) The Board shall not refuse or revoke the registration of a society without giving the society an opportunity of being heard.

(7) Where the Board refuse or revoke the registration of a society, they shall notify the society and, except in the case of a refusal or revocation on the ground specified in sub-paragraph (2)(e) above, the registration authority in writing of the refusal or revocation and the ground for it.

(8) The revocation of the registration of a society under this Schedule shall not have effect in relation to any lottery in respect of which any tickets or chances have already been sold at the date of revocation.

4 (1) The Secretary of State may direct the Board--

(a) to register under this Schedule any society that they have refused to register on any ground mentioned in paragraph 3(2) above; or

(b) to restore any registration that the Board have revoked on any ground mentioned in paragraph 3(2) or (5) above;

and the Board shall give effect to any such direction.

(2) The Board shall notify the society and the registration authority in writing of any direction that has been given to the Board under sub-paragraph (1) above.

(3) The restoration of any registration under sub-paragraph (1) above shall have effect from the date of revocation or such later date as may be specified in the direction.

5 The Board shall cancel the registration of a society under this Schedule if the society requests them to do so.

6 (1) A society that is registered under this Schedule shall pay to the Board--

(a) a prescribed fee at such intervals whilst the society is so registered as the Secretary of State may by order direct; and

(b) a prescribed fee for each society's lottery promoted on behalf of the society whilst it is so registered.

(2) Any fees received by the Board by virtue of this paragraph shall be paid into the Consolidated Fund.



Part II Information

7 A society registered under this Schedule shall notify the Board in writing of any change in the address of the society's office or head office within the period of twenty-one days beginning with the day on which the change takes effect.

8 (1) A society registered under this Schedule shall notify the Board in writing of any modification of a scheme approved by the society under section 5(3)(c) above.

(2) A copy of the scheme as modified shall be attached to the notification.

(3) The notification shall be given to the Board at least four weeks before any tickets or chances in a lottery promoted in accordance with the scheme as modified are sold, distributed or offered for sale.

(4) In this paragraph references to the modification of a scheme include the substitution for that scheme of another scheme (and references to the scheme as modified are to be read accordingly).

9 (1) Where a society is registered under this Schedule on the date of a society's lottery promoted on its behalf, it shall, before the end of the period of three months beginning with that date, send a return in respect of the lottery to the Board.

(2) The return shall be in such form and contain such information as the Board may direct.

(3) A direction under sub-paragraph (2) above shall be given in writing and may be varied or revoked by a subsequent direction.

10 (1) The Board shall preserve any return sent to them under paragraph 9 above for a period of at least eighteen months, and during that period shall keep it deposited at their office and permit any member of the public to inspect it during office hours on payment of a prescribed fee.

(2) Any fees received by the Board by virtue of this paragraph shall be paid into the Consolidated Fund.

11 (1) A society registered under this Schedule shall preserve all documents of the society, including all information kept by the society otherwise than in writing, relating to a lottery promoted on the society's behalf until the end of the period of two years beginning with the date of the lottery.

(2) The Board may direct that, subject to such conditions as may be specified in the direction, sub-paragraph (1) above shall not apply to documents or information specified, or of a description specified, in the direction.

(3) A direction under sub-paragraph (2) above shall be given in writing and may be varied or revoked by a subsequent direction.

12 The Board may require a society that is registered or has applied to be registered under this Schedule--

(a) to provide the Board with such information relating to any lottery promoted or to be promoted on behalf of the society as they may require;

(b) to allow the Board to inspect and take copies of any documents of the society, including any information kept by the society otherwise than in writing, relating to such a lottery;

(c) where such information is kept by means of a computer, to give the Board such assistance as they may require to enable them to inspect and take copies of the information in a visible and legible form and to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information;

(d) to allow the Board to inspect any aspect of the management of such a lottery.

13 (1) Subject to sub-paragraph (10) below, where the total value of the tickets or chances sold in all lotteries held in any one year and promoted on behalf of the same society is more than £100,000 and any of those lotteries is a lottery to which section 5(3B), (3C) or (3D) above applies, the society shall send to the Board accounts in respect of those lotteries together with a report on the accounts prepared by a qualifying auditor.

(2) The accounts shall be sent to the Board within ten months of the end of the year in which the lotteries to which they relate were held.

(3) Accounts under this paragraph shall comply with any directions given by the Board as to the information to be contained in such accounts, the manner in which such information is to be presented or the methods and principles according to which such accounts are to be prepared.

(4) Any directions under sub-paragraph (3) above shall be given in writing and may be varied or revoked by subsequent directions.

(5) In sub-paragraph (1) above "qualifying auditor" means a person who--

(a) is eligible for appointment as a company auditor under section 25 of the [1989 c. 40.] Companies Act 1989; and

(b) is not disqualified by sub-paragraph (6) below.

(6) The following persons are disqualified--

(a) a member of the society;

(b) a partner, officer or employee of such a member;

(c) a partnership of which a person disqualified by paragraph (a) or (b) above is a member.

(7) The auditor's report on any accounts under this paragraph shall state whether in the auditor's opinion the accounts have been properly prepared in accordance with any directions given under sub-paragraph (3) above.

(8) The auditor shall, in preparing his report, carry out such investigations as will enable him to form an opinion as to--

(a) whether proper accounting records have been kept by the society; and

(b) whether the society's accounts are in agreement with the accounting records.

(9) If the auditor fails to obtain all the information and explanations that, to the best of his knowledge and belief, are necessary for the purposes of his audit, his report shall state that fact.

(10) Sub-paragraph (1) above does not apply to a society in relation to any year if the promotion of every lottery promoted on behalf of the society held in that year is managed by a person certified under Schedule 2A below as a lottery manager.

(11) For the purposes of this paragraph a lottery is held in the year in which the date of the lottery falls.

(12) In this paragraph "year" means a period of twelve months beginning with 1st January.

14 (1) Any person who, in pursuance of a requirement imposed by or under paragraph 7, 9, 12 or 13 above, knowingly or recklessly gives to the Board any information which is false in a material particular shall be guilty of an offence.

(2) Any person who knowingly or recklessly includes in a report under paragraph 13 above any information which is false in a material particular shall be guilty of an offence. "



Section 49.

SCHEDULE 8 Registration of schemes: amendment of Schedule 2 to the 1976 Act

1 Paragraph 2 (submission of schemes by societies) shall be omitted.

2 (1) In paragraph 3(1) (duty of Gaming Board to register a scheme submitted to them)--

(a) after "this Schedule" there shall be inserted ", and notify the local authority in writing that they have done so,",

(b) paragraph (a) (scheme submitted by a society) shall be omitted,

(c) in paragraph (c)(i) for "applicant" there shall be substituted "local authority",

(d) in paragraph (c)(ii) after "payable" there shall be inserted "by the local authority",

(e) paragraph (c)(iii) (duty does not apply where requirements relating to provision of information have not been complied with) shall be omitted,

(f) in paragraph (d) (duty does not apply where an unsuitable person will be employed for reward in connection with the promotion of a lottery under the scheme) for "employed for reward in connection with the promotion of" there shall be substituted "a person connected with", and

(g) after paragraph (d) there shall be inserted-- " ; or

(e) except where the Secretary of State otherwise directs, it appears to the Board that the local authority--

(i) have given to the Board in or in connection with the authority's application for registration of the scheme any information which was false in a material particular; or

(ii) have failed to comply with a requirement imposed on them under paragraph 6C below; or

(f) except where the Secretary of State otherwise directs, it appears to the Board that an act or omission of a person who will be a person connected with a lottery under the scheme was a cause--

(i) of the registration of another scheme being refused or revoked on a ground specified in paragraph (e) above or paragraph 4(2)(c) below;

(ii) of the registration of a society being refused or revoked on the ground specified in paragraph 3(2)(b) or (f) of Schedule 1A above or under paragraph 3(5) of that Schedule; or

(iii) of a relevant lottery, in the promotion of which that person was involved, not being properly conducted. "

(2) After paragraph 3(1) there shall be inserted--

" (1A) In considering whether sub-paragraph (1)(f) above applies, the Board shall disregard any act or omission that occurred more than five years previously.

(1B) Where a scheme submitted to the Board under this Schedule is not registered by them, the Board shall notify the local authority concerned in writing of that fact and the reason for it. "

(3) In paragraph 3(2) ("unsuitable person" means a person convicted of one of a specified number of offences) after "an offence under paragraph 14 of Schedule 1 above" there shall be inserted ", paragraph 14 of Schedule 1A above, paragraph 8 or 9 below, paragraph 12 of Schedule 2A below".

(4) After paragraph 3(2) there shall be inserted--

" (3) For the purposes of this paragraph and paragraph 4 below--

(a) a person connected with a lottery is a person who is or has been--

(i) involved in the promotion of the lottery; or

(ii) employed for reward in connection with the promotion of any other lottery under the same scheme; and

(b) "relevant lottery", in relation to a scheme and a person, means a lottery promoted--

(i) under another scheme that at the time of the person's involvement with the promotion of the lottery was registered with the Board; or

(i) on behalf of a society that at the time of the person's involvement with the promotion of the lottery was registered with the Board. "

3 For paragraph 4(1) and (2) there shall be substituted--

" (1) The Board shall revoke the registration of a scheme if it comes to their attention that the scheme has become, or has always been, contrary to law.

(2) The Board may revoke the registration of a scheme--

(a) on any of the grounds (c), (d) or (e) specified in paragraph 3(1) above;

(b) if it appears to them that an unsuitable person is a person connected with any lottery under the scheme;

(c) if it appears to them that the local authority have failed to comply with a requirement imposed on them by or under paragraph 5A, 6, 6B, 6C or 6D below; or

(d) if it appears to them that an act or omission of a person who is or will be a person connected with a lottery under the scheme was a cause--

(i) of the registration of another scheme being refused or revoked on a ground specified in paragraph 3(1)(e) or paragraph (c) above;

(i) of the registration of a society being refused or revoked on the ground specified in paragraph 3(2)(b) or (f) of Schedule 1A above or under paragraph 3(5) of that Schedule; or

(iii) of a relevant lottery, in the promotion of which that person was involved, not being properly conducted.

(2A) In considering whether sub-paragraph (2)(d) above applies, the Board shall disregard any act or omission that occurred more than five years previously. "

4 After paragraph 4 there shall be inserted--

" 4A Where the Board revoke the registration of a scheme, they shall notify the local authority in writing of the revocation and of the ground for it.

4B The Board shall cancel the registration of a scheme if the local authority request them to do so. "

5 For paragraph 5(1) there shall be substituted--

" (1) The Secretary of State may direct the Board to restore any registration that has been revoked under paragraph 4(2) above, and the Board shall give effect to any such direction.

(1A) The Board shall notify a local authority in writing of any direction that has been given to the Board under sub-paragraph (1) above in relation to a scheme approved by the authority under section 6(2)(b) above. "

6 After paragraph 5 there shall be inserted--

" 5A (1) A local authority shall notify the Board in writing of any modification of a scheme approved by the authority under section 6(2)(b) above and registered under this Schedule.

(2) A copy of the scheme as modified shall be attached to the notification.

(3) The notification shall be given to the Board at least four weeks before any tickets or chances in a lottery promoted in accordance with the scheme as modified are sold, distributed or offered for sale. "

7 For paragraph 6 there shall be substituted--

" 6 (1) A local authority shall, before the end of the period of three months beginning with the date of any local lottery promoted by them, send a return in respect of the lottery to the Board.

(2) The return shall be in such form and contain such information as the Board may direct.

(3) A direction under sub-paragraph (2) above shall be given in writing and may be varied or revoked by a subsequent direction.

6A (1) The Board shall preserve any return sent to them under paragraph 6 above for a period of at least eighteen months, and during that period shall keep it deposited at their office and permit any member of the public to inspect it during office hours on payment of a prescribed fee.

(2) Any fees received by the Board by virtue of this paragraph shall be paid into the Consolidated Fund.

6B (1) A local authority shall preserve all documents of theirs, including all information kept by them otherwise than in writing, relating to a local lottery promoted by them until the end of the period of two years beginning with the date of the lottery.

(2) The Board may direct that, subject to such conditions as may be specified in the direction, sub-paragraph (1) above shall not apply to documents or information specified, or of a description specified, in the direction.

(3) A direction under sub-paragraph (2) above shall be given in writing and may be varied or revoked by a subsequent direction.

6C The Board may require a local authority--

(a) to provide the Board with such information as they may require relating to a local lottery promoted or to be promoted by the authority;

(b) to allow the Board to inspect and take copies of any documents of the authority, including any information kept by the authority otherwise than in writing, relating to such a lottery;

(c) where such information is kept by means of a computer, to give the Board such assistance as they may require to enable them to inspect and take copies of the information in a visible and legible form and to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information;

(d) to allow the Board to inspect any aspect of the management of such a lottery.

6D (1) Subject to sub-paragraph (10) below, where the total value of the tickets or chances sold in all local lotteries held in any one financial year and promoted by the same local authority is more than £100,000, the authority shall send to the Board accounts for those lotteries together with a report on the accounts prepared by a qualifying auditor.

(2) The accounts shall be sent to the Board within ten months of the end of the financial year in which the lotteries to which they relate were held.

(3) Accounts under this paragraph shall comply with any directions given by the Board as to the information to be contained in such accounts, the manner in which such information is to be presented or the methods and principles according to which such accounts are to be prepared.

(4) Any directions under sub-paragraph (3) above shall be given in writing and may be varied or revoked by subsequent directions.

(5) In sub-paragraph (1) above "qualifying auditor" means a person who is--

(a) eligible for appointment as a company auditor under section 25 of the [1989 c. 40.] Companies Act 1989;

(b) a member of the Chartered Institute of Public Finance and Accountancy; or

(c) a firm each of the members of which is a member of that institute;

and who is not disqualified by sub-paragraph (6) below.

(6) The following persons are disqualified--

(a) a member, officer or employee of the local authority;

(b) a partner or employee of such a person;

(c) a partnership of which a person disqualified by paragraph (a) or (b) above is a member.

(7) The auditor's report on any accounts under this paragraph shall state whether in the auditor's opinion the accounts have been properly prepared in accordance with any directions given under sub-paragraph (3) above.

(8) The auditor shall, in preparing his report, carry out such investigations as will enable him to form an opinion as to--

(a) whether proper accounting records have been kept by the local authority; and

(b) whether the authority's accounts are in agreement with the accounting records.

(9) If the auditor fails to obtain all the information and explanations that, to the best of his knowledge and belief, are necessary for the purposes of his audit, his report shall state that fact.

(10) Sub-paragraph (1) above does not apply to a local authority in relation to any financial year if the promotion of every local lottery promoted by them held in that year is managed by a person certified under Schedule 2A below as a lottery manager.

(11) For the purposes of this paragraph a lottery is held in the financial year in which the date of the lottery falls.

(12) In this paragraph "financial year" means a period of twelve months beginning with 1st April. "

8 For paragraph 7(1) there shall be substituted--

" (1) The following fees shall be payable by a local authority to the Board--

(a) a prescribed fee on an application for a scheme approved by the authority to be registered under this Schedule;

(b) a prescribed fee at such intervals whilst such a scheme is so registered as the Secretary of State may by order direct; and

(c) a prescribed fee for each lottery promoted under such a scheme. "

9 In paragraph 8 (offence to give false information to the Board) for "paragraph 6" there shall be substituted "paragraph 6, 6C or 6D".

10 After paragraph 8 there shall be added--

" 9 A person who knowingly or recklessly includes in a report under paragraph 6D above any information which is false in a material particular shall be guilty of an offence. "



Section 50.

SCHEDULE 9 Schedule to be inserted in the 1976 Act after Schedule 2



" Schedule 2A Lottery Managers

<<<< >>>>



Part I Certification

Application and fee

1 (1) An application for a person to be certified as a lottery manager shall be made to the Board.

(2) The application shall be in such form and contain such information as the Board may require.

(3) A fee of £2,000 shall be payable to the Board when the application is made.

(4) Any fees received by the Board by virtue of this paragraph shall be paid into the Consolidated Fund.



Grant or refusal of certificate

2 (1) Subject to sub-paragraphs (2) and (3) below, on the making of an application and the payment of a fee in accordance with paragraph 1 above, the Board shall grant a certificate to the applicant certifying him as a lottery manager.

(2) The Board shall refuse to grant the certificate if, after giving the applicant an opportunity of being heard, they are not satisfied that he is a fit and proper person to manage a lottery.

(3) The Board may refuse to grant the certificate if, after giving the applicant an opportunity of being heard, it appears to them that--

(a) any person who would be likely to manage the business or any part of the business of managing lotteries under the certificate is not a fit and proper person to do so,

(b) any person for whose benefit that business would be likely to be carried on is not a fit and proper person to benefit from it, or

(c) any information given by the applicant to the Board in or in connection with the application is false in a material particular.

(4) Where the Board refuse to grant a certificate, they shall notify the applicant in writing of the refusal and the ground for it.



Conditions

3 A certificate may include such conditions as the Board consider appropriate for protecting the interests--

(a) of any societies or local authorities whose lotteries the certificate holder may manage, or

(b) of the persons who participate in any lottery that the certificate holder may manage.

4 (1) The Board may, after giving the certificate holder an opportunity of being heard, vary any condition in a certificate.

(2) The Board's power to vary a condition in a certificate under this paragraph includes power to add a condition to the certificate or omit a condition from it (and references in this paragraph to the variation of a condition are to be read accordingly).

(3) Where the Board vary a condition under this paragraph they shall serve a notice on the certificate holder, by post, informing him--

(a) of the variation, and

(b) of the effect of sub-paragraph (4) below.

(4) The variation shall take effect at the end of the period of twenty-one days beginning with the date of service of the notice.



Duration of certificate

5 A certificate shall have effect until it is revoked by the Board.



Revocation of certificate

6 The Board may revoke a certificate if the certificate holder consents.

7 (1) The Board shall revoke a certificate if, after giving the certificate holder an opportunity of being heard, they are satisfied that he is no longer, or never was, a fit and proper person to manage a lottery.

(2) The Board may revoke a certificate if, after giving the certificate holder an opportunity of being heard, it appears to them that--

(a) any person who is managing the business or any part of the business of managing lotteries under the certificate is not a fit and proper person to do so,

(b) any person for whose benefit the business of managing lotteries under the certificate is carried on is not a fit and proper person to benefit from it,

(c) any information given by the certificate holder to the Board in or in connection with the application for the certificate was false in a material particular, or

(d) the certificate holder has failed to comply with a condition in the certificate or with a requirement imposed on him by or under this Act.

(3) Where the Board revoke a certificate under this paragraph they shall serve a notice on the certificate holder, by post, informing him--

(a) of the revocation,

(b) of the ground for the revocation, and

(c) of the effect of sub-paragraph (4) below.

(4) The revocation shall take effect at the end of the period of twenty-one days beginning with the date of service of the notice.



Part II Information

8 (1) A certificate holder shall preserve all documents of his, including all information kept by him otherwise than in writing, relating to the management of a society's lottery or a local lottery until the end of the period of two years beginning with the date of the lottery.

(2) The Board may direct that, subject to such conditions as may be specified in the direction, sub-paragraph (1) above shall not apply to documents or information specified, or of a description specified, in the direction.

(3) A direction under sub-paragraph (2) above shall be given in writing and may be varied or revoked by a subsequent direction.

9 The Board may require a certificate holder--

(a) to provide the Board with such information relating to the management of a society's lottery or a local lottery as they may require;

(b) to allow the Board to inspect and take copies of any documents of the certificate holder, including any information kept by him otherwise than in writing, relating to the management of such a lottery;

(c) where such information is kept by means of a computer, to give the Board such assistance as they may require to enable them to inspect and take copies of the information in a visible and legible form and to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information;

(d) to allow the Board to inspect any aspect of the management of such a lottery.

10 Where a certificate holder is a company to which section 241 of the [1985 c. 6.] Companies Act 1985 (directors' duty to lay and deliver accounts) applies, the company shall, immediately after copies of its accounts for a financial year have been laid before it under that section, send a copy of its profit and loss account for that year and the related auditors' report to the Board.

11 (1) A certificate holder to whom paragraph 10 above does not apply shall, in respect of each year in which he holds a certificate, send to the Board a profit and loss account of his business of managing lotteries under the certificate together with a report on the account prepared by a qualifying auditor.

(2) The account shall be sent to the Board within ten months of the end of the year to which it relates.

(3) An account under this paragraph shall comply with any directions given by the Board as to the information to be contained in such an account, the manner in which such information is to be presented or the methods and principles according to which such an account is to be prepared.

(4) Any directions under sub-paragraph (3) above shall be given in writing and may be varied or revoked by subsequent directions.

(5) In sub-paragraph (1) above "qualifying auditor" means a person who--

(a) is eligible for appointment as a company auditor under section 25 of the [1989 c. 40.] Companies Act 1989, and

(b) is not disqualified by sub-paragraph (6) below.

(6) The following persons are disqualified--

(a) the certificate holder;

(b) where the certificate holder is an unincorporated body of persons, any of those persons;

(c) a partner, officer or employee of the certificate holder or a person disqualified by paragraph (b) above;

(d) a partner or employee of a person disqualified by paragraph (c) above;

(e) a partnership of which any person disqualified by paragraph (a), (b) or (c) above is a member.

(7) The auditor's report on an account under this paragraph shall state whether in the auditor's opinion the account has been properly prepared in accordance with any directions given under sub-paragraph (3) above.

(8) The auditor shall, in preparing his report, carry out such investigations as will enable him to form an opinion as to--

(a) whether proper accounting records have been kept by the certificate holder, and

(b) whether the certificate holder's account is in agreement with the accounting records.

(9) If the auditor fails to obtain all the information and explanations that, to the best of his knowledge and belief, are necessary for the purposes of his audit, his report shall state that fact.

(10) In this paragraph "year" means a period of twelve months beginning with 1st January.

12 (1) A person who, in pursuance of a requirement imposed on him by or under paragraph 9, 10 or 11 above, knowingly or recklessly gives to the Board any information which is false in a material particular shall be guilty of an offence.

(2) A person who knowingly or recklessly includes in a report under paragraph 11 above any information which is false in a material particular shall be guilty of an offence. "



Section 64.

SCHEDULE 10 Repeals

ChapterShort titleExtent of repeal
61 & 62 Vict. c. 46.The Revenue Act 1898.Section 1 so far as it applies in the British Islands outside the United Kingdom and section 6(2).
1976 c. 32.The Lotteries and Amusements Act 1976.In section 5(3), paragraph (d) and the word "and" immediately preceding it.
Section 9.
In section 13(4), the words "or of section 11(6) or (8) above".
In section 18(1), at the end of paragraph (e) the word "and".
In Schedule 1, paragraph 1(1).
In Schedule 2, paragraphs 2 and 3(1)(a) and (c)(iii).
1980 c. 17.The National Heritage Act 1980.In section 3(6)(d), the words from "acting" to "1979".

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